p02 p12 - 東急建設株式会社

Integrated Report

1-16-14 Shibuya, Shibuya-ku, Tokyo 150-8340, JapanTEL : +81-3-5466-5008 FAX : +81-3-5466-5069E-mail : [email protected]

Corporate Communication Group,Corporate Planning Department, Corporate Strategy Division

Contents

Initiatives for Value Creation

Message from the President 12

Financial and Capital Strategies 18

Material Issues (Materiality) in “Our Ideals for 2026 — The Company We Hope to Be in 2026” 20

Tokyu Construction Group’s Ideal Vision of “Our Ideals for 2026 — The Company We Hope to Be in 2026” 22

Mid-Term Management Plan 2018-2020: Shinka 2020Urban Solution Business 24

At a Glance (Business Overview) 28

Overview by Business 30

Civil Engineering Business 30

Building Construction Business 32

Real Estate Business 34

International Business 36

Special Feature: SHIBUYA SCRAMBLE SQUAREPhase I (East Wing) 38

Story of Value Creation

As a Member of the Tokyu Group 02

History of Tokyu Construction Group 04

Strengths of Tokyu Construction Group(Source of Value Creation) 06

Value Creation Process 08

Financial and Non-Financial Highlights 10

Editorial Policy Tokyu Construction started issuing its “Integrated Report” in the fiscal year that ended in March 2017 (FYE Mar. 2017). This report allows us to consolidate our financial and non-financial information to inform our investors on how to contribute to society and the environment by improv-ing our corporate value through our businesses with both a medium- and long-term perspective.

Reporting period April 2018 to March 2019 *Part of the report includes information before and after the fiscal year 2018.

Scope of report Tokyu Construction Co., Ltd. and its domestic and overseas affiliates

Reference sources International Integrated Reporting Council (IIRC)’s “International Integrated Reporting Framework,” Ministry of Economy, Trade and Industry’s “Guidance for Collaborative Value Creation,” Ministry of the Environment’s “Environmental Reporting Guidelines 2012,” GRI’s “G4 Sustainability Reporting Guidelines” and Japanese Standards Association’s “ISO 26000: 2010 Guidance on Social Responsibility”

P12P02

The figures shown in this report are calculated based on the account-ing standards as of March 2019, which include our projections and/or forecasts. Please be noted that as they were forecasted based on our available information at the time of the publication, they contain some uncertainties.

01TOKYU CONSTRUCTION CO., LTD. Integrated Report 2019

Corporate Data

10-year Main Consolidated Financial and Non-Financial Data 58

Financial Overview 60

Company Profile 64

Stock Information 65

Foundation ThatSupports Value Creation

Corporate Governance 40

Board of Directors 44

Risk Management 46

Compliance 48

Human Resources 50

Occupational Safety (Health and Safety) 53

Quality Control 54

Consideration for the Environment 55

Social Initiatives 57

P40 P58

As a Member of the Tokyu GroupAs a member of the Tokyu Group, each of us employees of Tokyu Construction will contribute to corporate activities and society with an awareness of our responsibilities to the Tokyu brand, based on our group philoso-phy, so that we will be trusted and cherished by customers, investors, and society as a whole.

02 TOKYU CONSTRUCTION CO., LTD. Integrated Report 2019

Mission Statement We will help each person realize his or her dream by creating comfortable living environments that allow peace of mind

Management Policy Management that rises to the challenge/Management that makes the best use of employees/Management that values customers/Management that is fair and open

Principles of Conduct Independence/Speed/Teamwork/Reliability

Corporate Philosophy

Striving to respond to diversifying customer needs and providing the best solutions, we will enhance the quality of our business.

Developing better technology and services, we will pursue new business opportuni-ties in order to keep our capabilities evolving.

Continuing a tradition of contributing to society in its role as a general contractor, Tokyu Construction is dedicated to the pursuit of genuine value.

Deepening and Evolving in the Pursuit of Genuine ValueTokyu Construction

Vision

Town Value-up ManagementThe origin of Tokyu Construction lies in urban development such as Tama Garden City and the towns in areas surrounding Tokyu train lines. From this perspective, we will be involved in the life cycle of towns over many years, from planning proposals to new construction, renovation, and rebuilding. Accordingly, we will think not in terms of single buildings but of whole towns from the standpoint of customers and residents, and we will always strive to create new value.

Brand Message

Toward a Beautiful AgeBeauty is the guiding principle and standard of value for Tokyu Group as it meets the challenges of the future. For all of us in the Tokyu Group, the beauty we aspire to is a universal beauty deeply impressing anyone who encounters it, regardless of a person’s age or culture. We aim to create beauty in harmony with people, their communities, and the natural environment. With beauty as our touchstone, the Tokyu Group’s goal is to create beautiful living environments, which reflect our desire to serve our customers by refining our products and services, raising quality, and promoting good health. We are making every effort to realize this vision, and moreover, we aspire to play an active role in creat-ing a more harmonious society, overflowing with kindness and consideration, so that all people may find genu-ine happiness and express an individual lifestyle. Our slogan, “Toward a beautiful age,” expresses the commitment of all of us in the Tokyu Group to continually pursue beauty, and proclaims our determination to lead the way in creating beautiful living environments.

Tokyu Group Slogan

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Please visit our website for details.

CORPORATE PROFILE/Corporate Philosophy and Vision (https://www.tokyu-cnst.co.jp/company/vision.html)

Tokyu Construction’s Business Model

We hold the following shared vision as we work together to create and support the Tokyu Group.

Mission Statement We shall strive to create beautiful living environments, in which each person can pursue individual happiness in a harmonious society.

Management Policy Work independently and in collaboration to raise Tokyu Group synergies and establish a trusted and beloved brand.

Meet current market expectations and develop new ones. Manage in harmony with the natural environment. Pursue innovative management from a global perspective. Value individuality and encourage the best from each employee. Through these means, we will fulfill our corporate social responsibilities.

Principles of Conduct Fulfill your responsibilities. Collaborate to enhance each other’s abilities. Reinvent yourself with a global awareness.

Tokyu Group Philosophy

CorporatePhilosophyCorporatePhilosophy

Code of Conduct(specific criteria)

Code of Conduct(specific criteria)

Business philosophy that guides Tokyu Construction and its employees in all activities

Mission Statement

Management Policy

Principles of Conduct

Mid-term Management Plan and Annual Management Policy

Mid-term Management Plan and Annual Management Policy

Vision “Shinka* 2020”Vision “Shinka* 2020”

Values that should be maintained when establishing a management system for the continuous development of Tokyu Construction

The significance of Tokyu Construction in society

The attitude that should be taken when working as an employee of Tokyu Construction

An action plan to realize the vision

Criteria for action and behavior of employees of Tokyu Construction

Brand MessageTown Value-up Management

Type of company we seek to become in 2020Genuine value that can be shared by customers, employees and stakeholders

*“Shinka” is a key word to express our vision of “deepening and evolving in the pursuit of genuine value.”

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History of the Tokyu Construction Group

Despite emerging late as a general contractor, we have gradually built a business foundation driven by Japan’s era of high economic growth, and have developed into a safe and comfortable urban development partner alongside the development of the Tokyu Group. We will continue to contribute to society as “a general contractor that con-tinues to embody Shinka,” while advancing the technologies and know-how of construction industries in response to environmental changes and market needs, and accelerating our endeavors in new business domains.

1959TOKYU CONSTRUCTION CO., LTD. founded

Social Trends

1954Absorbed as the Construction Industry Department of TOKYU LAND CORPORATION

1946Tokyo Construction Industry Co., Ltd., was established

1964Tokyo Olympics

1970Expo ’70 held in Osaka

1973Oil crisis

1989Consumption tax introduced

1991Bubble economy burst

1995Great Hanshin-Awaji Earthquake

1998Financial System Reform Act established

2001September 11 terrorist attacks in US

20022002 FIFA World Cup Korea/Japan

Our origin was the development of Tokyu Tama Garden City. We created a vast area of 5,000 hectares, ranging from Kajigaya to Chuo-rinkan

In the civil engineering field, we gained a foothold in the creation and construction of railways, expanding to projects outside the Group to include private and government construction, and improving our technologies in both sectors.

In the building construction field, we improved our tech-nical capabilities for building super high-rise, large span, and large-space structures through projects in which we participated as a joint venture partner, while taking charge of construction work associated with urban development

Built hotels, resorts, homes, etc., of Tokyu Group companies and widely expanded overseas based on the “Pacific Rim Concept”

Accumulated vast technolo-gies and know-how related to subway construction

Construction technology that allows for railway lines to be elevated or put underground while trains are still running

Establishment of Business Foundation

Full-Scale Expansion Overseas

Growth of Railway and Urban Civil Engineering

Development of Building Technology

1966 Railway Civil Engineering

Multi-level crossing con-struction from Toyoko Line Naka-meguro to Toritsu-daigaku(Tokyu Traveler Construction Method)

1971 Building Construction

Keikyu Hotel(Hotel Pacific Tokyo)


Multi-level crossing construction of Tokyu Ikegami Line(The “STRUM Method,” our representative railway technology)


Narita Hangar, Japan Airlines


Start of Shin-Tamagawa Line constructionA complicated and difficult project, where all lines were moved under-ground following the Metropolitan Highway No. 3 Plan, and we also constructed the foundations of highway piers, railway tunnels, and common grooves

1972 Other

Institute of TechnologyAs a latecomer, we promoted research in unique fields such as acoustics, vibration, and soil quality

Completed very rapid construction to lay the cornerstone of “Tokyu, the Railway Construction Company”


Ito to Shimoda railway construction(Izukyu opened)

Received many orders for government construction such as highways related to the Tokyo Olympics

Obtained full-scale shielding technology through water and sewage construction ordered by local governments

1967 General Civil Engineering

Tamagawa main line construction(Bureau of Sewerage Tokyo Metropolitan Government)


Highway No. 4 road construction(Metropolitan Expressway Public Corporation)


Extension of the Den-en-toshi Line between Mizonokuchi and Nagatsuta


Land readjustment project at Nogawa First District

1984 Overseas

Palau Pacific Resort

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Strengths of Tokyu Construction

2005Postal Service Privatization Act established

2006Revised Antimonopoly Act enforced

2008Global financial crisis

2011Great East Japan Earthquake

20132020 Tokyo Olympic Games awarded

2015Sustainable Development Goals and Paris Agreement adopted

Teamwork

Tokyu Group’s Total Capabilities

Know-how of Urban

Development

2004Town Value-up Management

The company was split and a new Tokyu Construction was started in October 2003. We declared our brand message to have been and to be “a company committed to developing the genuine value of the town.”

In the midst of an unprec-edented business crisis, we completed one difficult project after another in urban areas

We advance the technology we have cultivated in response to environmental changes and market needs, taking on new business domains in addition to our core business

Challenges during the Recession Evolution of Urban Development Know-How


SHIBUYA STREAM


Route246 Shibuya Station East Exit Pedestrian bridge.


SHIBUYA SCRAMBLE SQUARE Phase I (East Wing)

General Civil Engineering

Infrastructure of Shibuya Sta. East Exit.


Shibuya Sta. West Exit. underpass


Pedestrian bridges of Shibuya Sta. West Exit.

Building Construction Railway Civil Engineering

Tokyo Metro Ginza Line Shibuya Sta.

2019 Other

Integrated business for work in reconstruction projects of the area around Ofunato StationUrban development with the Construction Management Method

2019 Overseas

Jakarta Mass Rapid Transit Project


Restoration work of Sanriku Railway Kita-Rias LineWe contributed to earth-quake reconstruction with GRS integrated bridges, a new technology


Development plan of Tama-plaza Station area


Futako Tamagawa rise

2017 Other

PPP/Concession BusinessManagement of public sewerage system, HamamatsuOur first domestic project in the water and sewage field


Shibuya Hikarie


Q FRONT


SHIBUYA MARK CITY


CERULEAN TOWER Bldg.

Redevelopment of Shibuya Station Area

©東急株式会社

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Seismic reinforcement of elevated bridge of Toyoko Line Gakugei-daigaku StationFirst application of the “Combination Hoop Method” for seismic reinforcement in narrow spaces. It has now evolved into the “Combination Panel Method”


Throughout the history of Tokyu Construction, we have utilized three strengths cultivated by our Group to con-tribute towards sustainable society demanded by the times in various regions, including redevelopment of the area around Shibuya Station.

Tokyu Construction started with 138 employees, a number that expanded rapidly to over 2,000 in under 10 years. As Tokyu Construction is a grouping of diverse human resources full of vitality through mid-career employment, we have always placed the most emphasis on “teamwork” in terms of management. In the four guidelines set forth by our first president, Noboru Goto, when establishing the company, he under-lined the importance that, “construction work is done through the teamwork of various people involved. The infinitely repeated efforts, wherein each indi-vidual actively works toward the same goal, builds trust from customers and the community.” In addition, urban development and railway construction carried out by Tokyu Construction has consequently strengthened our bonds that go beyond the boundaries of civil engineering and building construction. This DNA is passed down from one generation to the next. Our culture of collab-oration between civil engineering and building construction has become our unique strength. In our various large-scale projects so far, including in Shibuya, we have utilized these strengths to contribute to urban development.

Our corporate DNA, which was announced as the “first” of the “four guidelines” set forth by our first president, Noboru Goto, in 1969, and has been passed down from one generation to the next since our founding.

Strengths of Tokyu Construction as “a Group”(Value Creation Source)

TeamworkWe have refined our human resources and organizational capabilities into “core competencies” by utilizing our unique corporate culture and team-work, in which civil engineering and building construction have cooperated with each other as one team since our establishment.

The construction industry is a labor-intensive industry. Therefore, “teamwork” forms the foundation of our business and is also a factor we are most aware of, as we had experi-enced rapid growth while being a latecomer in the construction industry field. It is through “reliability” that our customers choose us as their partner for building the future. We have built up “reliability” through “teamwork,” which we have always stated as the most important management issue since the establishment of Tokyu Construction. We will continue to improve our “teamwork,” which has been passed down from generation to generation, into “core competencies” as human resources and organizational capabilities.

EpisodE

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During Japan’s rapid economic growth period, Tokyu Construction was responsi-ble for construction business as part of the Tokyu Group’s business development

in Japan and overseas. By responding to local needs and working outside of the Tokyu Group, we have grown uniquely and worked to achieve mutual

development while feeding that growth back into the Tokyu brand. The relationships with local communities and our group companies

built through various activities have become a unique asset of the Group, and have the potential to demonstrate great synergies in our business activities.

The origin of our brand message, “Town Value-up Management,” dates back to the development of Tokyu Tama Garden City, the largest postwar private sector project

that was started by the Tokyu Group in 1959. As a member of the Group, we laid the foundation of our business by consistently conducting urban develop-

ment from site preparation and land readjustment to building, road, and railway construction, in order to turn the vast wilderness of the

Tama Hills into an ideal planned community. After that, we went beyond the framework of a construction contractor to con-

sider the value of the entire town from the perspective of customers and residents, having long been involved in the town’s life cycle, with an emphasis on ease of living and harmony with the environment. Our current urban devel-opment know-how accumulated over the span of more than half a century has evolved in various areas, such as redevelopment of the area around Shibuya Station, and has been used for new value creation for sustainable towns demanded by the times.

Strengths of Tokyu Construction as “a Group”(Value Creation Source)

Tokyu Group’s

Total CapabilitiesIn collaboration with Tokyu Group com-panies, we have further strengthened the “Tokyu brand,” which is known for providing a safe and comfortable living environment. We make this value one of our competitive strengths.

Know-How of Urban

DevelopmentThe origin of Tokyu Construction lies in the urban development of Tama Garden City. For many years, we have provided know-how to enhance the value of the entire town from the perspective of cus-tomers and residents.

A road lined with beautiful trees

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External Environment

Changes in Social Environment

Changes in the Business Environment

• Shrinking working-age population due to declining birthrate and aging population

• Population concentrating in urban areas

• Increasing awareness of disaster preparedness caused by more natural disasters

• Work-style reform

• Evolution of digital technology (AI, IoT, robots, etc.)

• Population growth, infrastruc-ture development, and improvement of living stan-dards in developing countries

• Advancement of global warming

(Management Base that Supports Value Creation)Corporate Governance Risk Management Compliance

How Do We Create Value?

• Tokyu Group Philosophy

• Tokyu Construction Corporate Philosophy and Vision

• Advanced technical and proposal abilities for construction business in urban areas

• Providing comprehensive solutions that go beyond the construction contracting business, using connections with the Tokyu Group and regional superior general contractors

Tokyu Group Brand Power

• Identifying true customer needs and providing value using Group companies’ strengths and areas of expertise

• Increasing mutual value among Tokyu Group companies through business and activities conducted with local communities

EnhancingFunctionality

ExpandingBusinessDomains

DemonstratingTotal Capabilities

of the Group

MissionStatement

ManagementPolicy

Principlesof Conduct

Tokyu Brand Synergy

• Increasing labor shortages (decrease in skilled construction workers, rapid aging of society)

• Growing need for productivity improvement (digitalization and modular-ization of building materials)

• Qualitative change in demand from new construc-tion to renovation (increased demand for maintenance and repairs caused by aging infrastructure)

Capital

• A group of professionals with a high level of awareness of resident perspectives and urban development

• A culture that emphasizes a strong willingness to contribute to society and a sense of unity

Human Capital

• Stable financial base

• High capital efficiency

Intellectual Capital

• Urban development ability

• Highly advanced construc-tion technology cultivated in railway construction

Social and Relationship Capital

• Connections with the Tokyu Group companies and areas along Tokyu railways

• Strong relationship with customers

• Collaboration with regional superior general contractors and subcontractors

Value Provided to StakeholdersServices Provided

Construction and mainte-nance of Japanese and

overseas structures, such as railways, roads

and tunnels

InfrastructureDevelopment

Construction and mainte-nance of domestic and overseas commercial

facilities, hotels, offices, houses, etc.

Urban Development

Increase capital for further value creation

Mission and Vision

Tokyu Construction Value Chain


[Corporate Philosophy]

[Vision]

[Direction for Strengthening our Value Chain]

Real Estate RentalImproving the building

value of profitable real estate (offices,

commercial facilities, houses, etc.)

PPP / ConcessionStable operation of urban

infrastructure, including water and sewage

Strengths of Tokyu

Construction

Energy saving and effective use of resources in the construction process

Energy saving throughout the building life cycle

Global Environment

Increase in local value through construction services and urban development

Local Community

Promotion of co-creation with partner companies and suppliers, as well as long-term and continuous growth

Partner Companies

Demonstration of abilities and improvement in working environment

Employees

Long-term, sustainable corporate (stock) value improvement

Shareholders and Investors

Optimal solutions centered on construction services in response to customer needs

Customers and End Users

TokyuGroup’s TotalCapabilities

Know-howof Urban

Development

Teamwork

Financial Capital

See p. 02 for details


See p. 40 for details See p. 46 for details See p. 48 for details

Value Creation Process


External Environment

Changes in Social Environment

Changes in the Business Environment

• Shrinking working-age population due to declining birthrate and aging population

• Population concentrating in urban areas

• Increasing awareness of disaster preparedness caused by more natural disasters

• Work-style reform

• Evolution of digital technology (AI, IoT, robots, etc.)

• Population growth, infrastruc-ture development, and improvement of living stan-dards in developing countries

• Advancement of global warming

(Management Base that Supports Value Creation)Corporate Governance Risk Management Compliance

How Do We Create Value?

• Tokyu Group Philosophy

• Tokyu Construction Corporate Philosophy and Vision

• Advanced technical and proposal abilities for construction business in urban areas

• Providing comprehensive solutions that go beyond the construction contracting business, using connections with the Tokyu Group and regional superior general contractors

Tokyu Group Brand Power

• Identifying true customer needs and providing value using Group companies’ strengths and areas of expertise

• Increasing mutual value among Tokyu Group companies through business and activities conducted with local communities

EnhancingFunctionality

ExpandingBusinessDomains

DemonstratingTotal Capabilities

of the Group

MissionStatement

ManagementPolicy

Principlesof Conduct

Tokyu Brand Synergy

• Increasing labor shortages (decrease in skilled construction workers, rapid aging of society)

• Growing need for productivity improvement (digitalization and modular-ization of building materials)

• Qualitative change in demand from new construc-tion to renovation (increased demand for maintenance and repairs caused by aging infrastructure)

Capital

• A group of professionals with a high level of awareness of resident perspectives and urban development

• A culture that emphasizes a strong willingness to contribute to society and a sense of unity

Human Capital

• Stable financial base

• High capital efficiency

Intellectual Capital

• Urban development ability

• Highly advanced construc-tion technology cultivated in railway construction

Social and Relationship Capital

• Connections with the Tokyu Group companies and areas along Tokyu railways

• Strong relationship with customers

• Collaboration with regional superior general contractors and subcontractors

Value Provided to StakeholdersServices Provided

Construction and mainte-nance of Japanese and

overseas structures, such as railways, roads

and tunnels

InfrastructureDevelopment

Construction and mainte-nance of domestic and overseas commercial

facilities, hotels, offices, houses, etc.

Urban Development

Increase capital for further value creation

Mission and Vision

Tokyu Construction Value Chain


[Corporate Philosophy]

[Vision]

[Direction for Strengthening our Value Chain]

Real Estate RentalImproving the building

value of profitable real estate (offices,

commercial facilities, houses, etc.)

PPP / ConcessionStable operation of urban

infrastructure, including water and sewage

Strengths of Tokyu

Construction

Energy saving and effective use of resources in the construction process

Energy saving throughout the building life cycle

Global Environment

Increase in local value through construction services and urban development

Local Community

Promotion of co-creation with partner companies and suppliers, as well as long-term and continuous growth

Partner Companies

Demonstration of abilities and improvement in working environment

Employees

Long-term, sustainable corporate (stock) value improvement

Shareholders and Investors

Optimal solutions centered on construction services in response to customer needs

Customers and End Users

TokyuGroup’s TotalCapabilities

Know-howof Urban

Development

Teamwork

Financial Capital



See p. 40 for details See p. 46 for details See p. 48 for details

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■ Operating income Operating income margin

■ Total capital Equity ratio ■ Dividends per share Payout ration

■ Workplaces ■ Office

■ Volume of construction by-products generated

*Consumption by-products are generated during construction work. This includes recycled resources and waste.

Recycling rate

*The frequency rate is an index that shows the frequency of industrial accidents that caused injury and/or death per one million total extended working hours. The Strength rate is an index that shows the scale of industrial accidents that caused workdays lost per thousand total extended working hours.

■ Male ■ Female

Orders received

0

100,000

200,000

300,000

400,000

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

(Millions of yen)

341,992341,992

303,758303,758 293,539293,539 299,436299,436285,476285,476

Net sales

0

100,000

200,000

300,000

400,000

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

(Millions of yen)

262,815262,815

296,393296,393

243,618243,618

320,711320,711 331,437331,437

Operating income / Operating income margin

0

10,000

5,000

15,000

20,000

25,000(Millions of yen)

0

9

6

3

12

15(%)

6,0096,009

18,17818,17817,21117,211

21,41621,416 21,98721,987

Return on equity (ROE)

0

10

20

30(%)

Total capital / Equity ratio

0

25,000

50,000

75,000


0

15

30

45

60(%)

44,86144,861

54,23854,238

66,38066,380

79,17579,175

92,98192,981

Dividends per share / Payout ratio

0

10

20

30

40(Yen)

0

10

20

30

40(%)

1313

2525 2626

3131 3030

CO2 emissions

0

20,000

40,000

60,000

80,000

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

(t-CO2)

61,23561,2351,8411,841

1,9131,913 1,8201,820

59,39459,39466,11266,112 67,33367,333

51,60251,602 54,26554,265

68,02568,025 69,15369,153

53,35653,35655,92355,923

Energy consumed (Head office, branch offices, laboratories and factories)

0

10

20

30

40

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

(Fuel oil conversion: ℓ/m2)

25.6425.64 26.5626.56 25.6525.65 24.6624.66 25.3325.33

Construction by-products* generated / Recycling rate

0

25

50

75

100(10,000 t)

0

25

50

75

100(%)

40.340.347.347.3

39.539.5 41.041.037.637.6

Accident frequency rate*

0

0.40

0.80

1.20

Number of employees

0

1,000

2,000

3,000(Persons)

2,3402,340179179 193193 215215

2342342,4122,412 2,4642,464 2,5372,537 2,5232,523

2,1612,161 2,2192,219 2,2492,249 2,3032,303 2,2752,275

248248

Employment rate for people with disabilities

Legal employment rate2.2%

0

1.0

2.0

3.0(%)

2.32.3

23.223.225.225.2

32.332.3 31.631.6

6.16.1

7.17.1 6.76.7

22.222.222.822.8

27.027.0

14.514.5

6.66.6

35.035.0

18.118.1

20.520.520.320.320.020.0

23.923.9

20.620.6

1,7541,7541,6581,658

96.196.1 95.995.9 98.498.4 99.499.494.094.0

0.760.76

0.170.170.120.12

0.200.20

0.430.43

1.841.84

2.222.22 2.262.26 2.302.302.462.46

Safety index: √ (Frequency rate x Strength rate)


Financial and Non-Financial Highlights

Financial Highlights (Consolidated)

■ Operating income Operating income margin

■ Total capital Equity ratio ■ Dividends per share Payout ration

■ Workplaces ■ Office

■ Volume of construction by-products generated

*Consumption by-products are generated during construction work. This includes recycled resources and waste.

Recycling rate

*The frequency rate is an index that shows the frequency of industrial accidents that caused injury and/or death per one million total extended working hours. The Strength rate is an index that shows the scale of industrial accidents that caused workdays lost per thousand total extended working hours.

■ Male ■ Female

Orders received

0

100,000

200,000

300,000

400,000

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

(Millions of yen)

341,992341,992

303,758303,758 293,539293,539 299,436299,436285,476285,476

Net sales

0

100,000

200,000

300,000

400,000

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

(Millions of yen)

262,815262,815

296,393296,393

243,618243,618

320,711320,711 331,437331,437

Operating income / Operating income margin

0

10,000

5,000

15,000

20,000


0

9

6

3

12

15(%)

6,0096,009

18,17818,17817,21117,211

21,41621,416 21,98721,987

Return on equity (ROE)

0

10

20

30(%)


0

25,000

50,000

75,000


0

15

30

45

60(%)

44,86144,861

54,23854,238

66,38066,380

79,17579,175

92,98192,981

Dividends per share / Payout ratio

0

10

20

30

40(Yen)

0

10

20

30

40(%)

1313

2525 2626

3131 3030

CO2 emissions

0

20,000

40,000

60,000

80,000

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

(t-CO2)

61,23561,2351,8411,841

1,9131,913 1,8201,820

59,39459,39466,11266,112 67,33367,333

51,60251,602 54,26554,265

68,02568,025 69,15369,153

53,35653,35655,92355,923

Energy consumed (Head office, branch offices, laboratories and factories)

0

10

20

30

40

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

FYE Mar.2015

FYE Mar.2017

FYE Mar.2016

FYE Mar.2018

FYE Mar.2019

(Fuel oil conversion: ℓ/m2)

25.6425.64 26.5626.56 25.6525.65 24.6624.66 25.3325.33

Construction by-products* generated / Recycling rate

0

25

50

75

100(10,000 t)

0

25

50

75

100(%)

40.340.347.347.3

39.539.5 41.041.037.637.6

Accident frequency rate*

0

0.40

0.80

1.20

Number of employees

0

1,000

2,000

3,000(Persons)

2,3402,340179179 193193 215215

2342342,4122,412 2,4642,464 2,5372,537 2,5232,523

2,1612,161 2,2192,219 2,2492,249 2,3032,303 2,2752,275

248248

Employment rate for people with disabilities

Legal employment rate2.2%

0

1.0

2.0

3.0(%)

2.32.3

23.223.225.225.2

32.332.3 31.631.6

6.16.1

7.17.1 6.76.7

22.222.222.822.8

27.027.0

14.514.5

6.66.6

35.035.0

18.118.1

20.520.520.320.320.020.0

23.923.9

20.620.6

1,7541,7541,6581,658

96.196.1 95.995.9 98.498.4 99.499.494.094.0

0.760.76

0.170.170.120.12

0.200.20

0.430.43

1.841.84

2.222.22 2.262.26 2.302.302.462.46

Safety index: √ (Frequency rate x Strength rate)

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Non-Financial Highlights (Non-Consolidated)

We will do our utmost to become a corporate group that can cope with the changing business environment by improving teamwork and enhancing the problem-solving skills of each individual.

Mitsuhiro TeradaRepresentative Director, President

12

Message from the President

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in order to become a corporate group that is capable of boldly and smoothly adapting to the changes that are expected in our business environment. To put it more simply, it means to convert our employees’ experience and knowledge into “true value.” From this perspective, I consider my biggest role is to be encouraging the transfor-mation of our human resources and organization, in order to elicit the motivation and capabilities of our employees, and lead to the sustainable growth of our company.

The Characteristics of Our Company

Strength is Good Teamwork Where Members Join Hands

In November 2019, our company will celebrate its 60th Anniversary. Within this period, I have worked for the com-pany for 40 years, including 20 years at construction work sites and division which supervises the field. Due to this expe-rience, I feel strongly about our unique corporate culture, which includes teamwork in which everyone helps each other, along with an open atmosphere. This was reflected in the “employee engagement survey,” a survey targeting all of our employees, which showed our company’s strength to be “a sense of unity at the workplace.” Our company is a part of the Tokyu Group, whose core business is a railway business boasting a strong competitive advantage in the field of railway construction. For example, diversion of railway tracks is one of the types of work that other construction companies often struggle to execute. Such unique technology and know-how are utilized in a variety of contexts. We have an environment where teamwork can easily be fostered, as our civil engineering and building construction divisions often work together in railway construction. In the diversion of railway tracks, we use the STRUM method*, which combines various technologies, and also requires excellent teamwork in addition to technological know-how. Although it is difficult for outsiders to notice this, we con-sider it to be our great advantage.

New Management Structure

Upon My Appointment as President

I was appointed as the new president in June 2019. In fiscal year 2018, the former president, Mr. Imamura, took the lead in promoting the “Mid-Term Management Plan (2018-2020): Shinka 2020” and achieved results that far exceeded our ini-tial forecast, in which orders received had been restrained in consideration of our construction capacity. In particular, we had achieved all-time highs in net sales, operating income, and ordinary income since the company split in 2003. On the other hand, we are greatly concerned that we may not be able to keep up with the times if we are not determined to intensify our efforts to achieve “Our Ideals for 2026—The Company We Hope to Be in 2026,” which was formulated last year, as changes in the business environment are certain to accelerate following the 2020 Tokyo Olympic Games. Therefore, in order to proceed with the implementation of our medium- to long-term management strategies at a more rapid pace, Vice Chairman Imamura will focus on leading these strategies to create a stable cash flow, as chairman of the Strategy Meeting, while I will take charge of strengthening our core business, in terms of accelerating the construction business, as I have much experience work-ing at construction work sites. We will work together and make balanced efforts to enhance the construction business and promote our medium- to long- term management strategies, and I will lead company-wide management, as the president.

Aspiration and Vision

Imperativeness to Enhance Problem-solving Skills at Work Sites

I am strongly aware that the enhancement of problem-solving skills is an urgent challenge. Our company defines such skills as “skills to discover and solve problems independently,” and there is no doubt that human resources are the origin of “Shinka (true value).” While it is necessary to enhance the problem-solving skills that can support the competitiveness of our company at every site, including our indirect divi-sions, I believe, in particular that enhancing problem-solving skills at work sites, which are construction sites, is an urgent matter. Our company has identified carrying out safety-first operations, realization of the quality required by custom-ers, implementation of environment-friendly management, improvement of productivity, and reduction of costs as the five elements for enhancing problem-solving skills at work sites, and we will thoroughly strengthen each of these ele-ments in order to make our company more stable. Furthermore, our company has adopted the concept of “a general contractor that continues to embody Shinka” as our corporate vision. In this regard, what it means to demonstrate “Shinka,” in terms of deepening and evolving in the pursuit of true value, is to “deepen” the technology and know-how that our company has accumulated thus far, while also “evolving” the capabilities of our employees,

In the railway diversion work conducted in 2013 to complete the under-ground section between Shibuya Station and Daikanyama Station (Tokyu Toyoko Line), approximately 1,200 workers engaged in the work within a limited time span of roughly three and a half hours after the passing of the last train, completing work without incident before the arrival of the first train.

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However, the most serious issue is a significant drop in construction supply capacity, due to a labor shortage resulting from a large number of retiring senior workers. In the next decade, the number of construction workers in Japan is expected to decrease by roughly one million. This value is equal to 20% to 30% of the total number of indi-viduals, which means that we must increase productivity by more than 20%, and that competition for securing human resources will be severe. In addition, considering depopulation, a reduction in demand for new construction is unavoidable over the medium to long term, although demand for maintenance and repair of deteriorating infrastructure will certainly rise. In other words, our company is strongly required to adapt to a “recurring-revenue” business model, which taps demand for renovation, maintenance, and repair, in place of the current “spot-revenue” business model, which is based on contracts for new construction. “Our Ideals for 2026—The Company We Hope to Be in 2026” is also a management strategy that aims to realize a corporate group that can cope with such changes in the business environment.

Progress of “Mid-Term Management Plan (2018-2020): Shinka 2020”

“The Mid-Term Management Plan (2018-2020): Shinka 2020” is one of the three steps to realize “Our Ideals for 2026—The Company We Hope to Be in 2026.” The plan progressed steadily in fiscal year 2018, the first year of the plan. As for “reinforcing the domestic construction business,” we restructured our organization based on a custom-er-centered perspective, in order to more integrally link sales and construction, and made efforts to strengthen our company’s relationship with customers as their business partner. In addition, in order to grow our building renova-tion business, we have consolidated this business in the metropolitan area in to our subsidiary TOKYU RENEWAL Co., Ltd., and are obtaining positive results. As for “promoting the diversification of revenue sources,” the acquisition of profitable real estate has progressed more rapidly than expected. We also have received an order for large-scale railway improvement work, as an ODA project in Myanmar in the international business. In the PPP (public-private partnerships)/conces-sion business, we are participating in the sewerage system business in Hamamatsu City and the Sendai Airport man-agement service, and are promoting the creation of local networks in collaboration with various companies. As a result of these efforts, both net sales and profit exceeded our estimates on a consolidated basis, return on equity remained high at 18%, and further progress was made in terms of accumulating core capital.

In addition, we have been steadily accumulating achieve-ments in terms of constructing super high-rise buildings in Shibuya (including SHIBUYA MARK CITY, Cerulean Tower, Shibuya Hikarie, SHIBUYA STREAM, and SHIBUYA SCRAMBLE SQUARE), all of which are landmarks. The area surrounding Shibuya Station is considered to be one of the most complicated in Japan, not only because of the tech-nology of high-rise buildings, but also due to the intersec-tion of numerous railway lines; an environment surrounded by many different types of infrastructure including the Metropolitan Expressway, national roads and rivers; and it is a place where extremely large numbers of people visit. We are confident that the construction know-how particularly in Shibuya that we have cultivated by taking part in a wide range of projects, such as station renovation work and the development of underground tunnels, surrounding roads and plazas, is best of all. As a person who possesses much experience at these kinds of work sites, I understand the difficulties inherent in organizing a team and completing a large project. Accordingly, we aim to become a corporate group that embodies true value through a vital corporate culture, by giving consideration to the employees who are working at the front line.

*STRUM method (Shifting Track Right Upper/Under Method)This is a construction method in which a new track is prepared directly above or under an existing track, without installation of a temporary track during the construction process, in order to elevate the track or move it underground. This method does not require a site for a temporary track system, nor suspen-sion of railway operations, as the work is conducted between the departure of the last train and the arrival of the first train. Due to the requirement that a large number of people must work together in a short period of time, this method requires both careful planning and excellent management.

Contribute to Improving the Value of the Tokyu Brand

Our company has “the Tokyu Brand” as an additional advan-tage over other general contractors. At present, our sales ratio of the Tokyo Group is between 10% and 20%. However, we benefit substantially from the Tokyu brand image with respect to railway construction and urban development, in addition to feelings of security and trust toward the brand. However, our company does not wish to lean too much on the Tokyu brand, and aims to further increase the brand’s value by enhancing cohesiveness and demonstrating Group synergies as “One Tokyu,” through participation in the above-mentioned large-scale redevelopment project, railway constructions, and other projects of Shibuya Station and along Tokyu train lines, as a member of the Tokyu Group.

Business Environment and Management Strategies

Background of “Our Ideals for 2026—The Company We Hope to Be in 2026”

There are many redevelopment plans in the domestic con-struction market, and when infrastructure investment for national resilience is also considered, demand is unlikely to fall sharply following the 2020 Tokyo Olympic Games.

“Our Ideals for 2026—The Company We Hope to Be in 2026”A corporate group that can cope with the changing environment and embodies true value through a vital corporate culture

Refer to page 20 for

details.

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Promotion of the Urban Solution Business

Our unique business model, the “Urban Solution Business,” more accurately embodies our medium- to long-term strategy “Our Ideals for 2026—The Company We Hope to Be in 2026.” In this strategy, we will make efforts toward reinforcing the necessary solutions through active alliances and M&A, in addition to enhancing coop-eration with each company of the Tokyu Group, which is our main advantage, and also construct a comprehensive value chain that includes collecting information, making proposals, designing and construction, tenant leasing, maintenance and management, and renovation, in order to expand income opportunities for our Group. For example, regions along the Tokyu train lines such as the Den-en-toshi Line and the Toyoko Line, where the Tokyu Group has the geographical advantage, have many medium-scale rental apartments and office buildings, and potential demand for value improvement in these areas has risen sharply following the redevelopment of Shibuya. We expect the demand for small and satellite offices to also increase in neighboring areas that are just adjacent to Shibuya. We believe that we can stimulate new demand by providing meticulous solutions, after grasping the local needs and issues. We hope to establish a unique business model that is differentiated from those of other

As for non-financial items, we are engaged in initiatives to reduce CO2 and waste materials, and will engage in more thorough efforts to increase employee awareness regard-ing the environment in fiscal year 2019. On the other hand, work-style reforms at work sites, such as the number of work site closure days and controlling long working hours, are still midway. In addition, as we have yet to achieve our targets for accident frequency, we are working to enhance commu-nication at work sites to prevent disasters.

Direction of Strategies Based on the Business Environment

We will implement strategies in accordance with the Mid-Term Management Plan (2018-2020): Shinka 2020 in fiscal year 2019, in consideration of major trends in the construc-tion industry, such as a worsening labor shortage, a grow-ing need for improvement in productivity, and expansion of demand for renovation. As mentioned earlier, the domestic construction mar-ket will gradually decline over the medium to long term, and demand is also expected to shift from a spot-revenue business model to a recurring-revenue business model. In addition, the aging of workers is more prevalent in the construction industry than in other industries, and the labor shortage will intensify with retirement of a large num-ber of workers from the baby boom generation. As this is a common issue for other industries as well, competition in recruiting young persons and foreign workers will intensify, raising the possibility of industrial restructuring originating from the securing of human resources. To tackle the problem of labor shortage, we expect advancements in efforts to improve productivity by making full use of advanced technology. Currently, the entire industry is taking steps towards efficiency improvements in design and construction work via BIM/CIM, as well as adoption of i-Construction, which thoroughly utilizes ICT in the construction production process. In addition, modularization of construction materials, such as introduction of the PC (precast concrete) method, which contributes to labor saving, improved quality, and stable supply, is expanding. As a result of these efforts, we expect to see the rapid progress of an operational revolu-tion, in which the construction industry is transformed from a traditional labor-intensive operation requiring manpower, into a capital-intensive operation that utilizes production factories and machinery. Our Group is also expanding the acquisition of authorized precast concrete factory qualifications in order to improve productivity, and adopting advanced technologies, such as AI, IoT, and robotics, as well as new construction meth-ods to enhance problem-solving skills at work sites. In addition, we will make efforts toward adopting a more active order receiving style by enhancing our proposal-mak-ing ability to meet various needs, such as land utilization, renovation, and improvement of property value, by utilizing the comprehensive power of the Tokyu Group, which is our advantage. Furthermore, we plan to secure construc-tion resources from a medium- to long-term perspective, through reinforcement of cooperation (alliance/M&A) with superior general contractors and subcontractors in local regions, in order to solve the problem of labor shortage.

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operations, in order to contribute to the SDGs, which repre-sent common sustainable development goals, worldwide. The starting point of our company was a construction project to develop Tama Garden City and extend a railway into the vicinity. We are a general contractor who has devel-oped buildings and social infrastructure that are directly linked to the lives of local people, by continuing to work for urban development as a member of the Tokyu Group, which runs a local-oriented life industry. A large number of people, including employees, customers, partner companies, users, and local residents, are connected to our business, and the scope of our social responsibility is wide in extent. As for providing satisfactory workplaces for our employ-ees, it is imperative that we improve the situation with respect to long working hours. Although the standards regarding overtime work limits for the construction indus-try provides a five-year grace period, we will increase the pace of our improvement. Through cooperation between

companies, by establishing a construction system that is capable of handling small- to medium-sized projects of varying scales, including demand for renovation, while at the same time acquiring human resources who possess know-how that our company does not currently have, such as tenant leasing.

ESG

Helping Solve Social Issues Through our Business Operations

As a construction company that is engaged in business globally, our company has identified eight SDG goals that are closely related to our business. We are undertak-ing initiatives to solve these goals through our business

Important social issues to be given priority by our Group within the framework of the SDGs

Human resources

Provide rewarding workplaces for a diverse workforce Foster human resources who can contribute to society in a sustainable way

Society Contribute to urban development that ensures safe, secure and comfortable living Provide optimum construction solutions and create services Improve efficiency of production processes through technological innovation

Environment

Reduce greenhouse gases and promote resource and energy conservation Reduce and recycle construction by-products Develop green engineering and create environmentally-friendly designs

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the Work Style Reform Department, which was newly established in fiscal year 2018, and our business units, we will strongly promote this initiative. In addition, as an increasing number of small- and medium-sized subcontractors have been going out of business due to the labor shortage in recent years, we have established a counter that offers consultations regarding business succession, as part of our efforts to provide hiring support. Furthermore, responding to environmental problems mainly by reducing CO2 and other greenhouse gases, is an important task, given that our company provides a safe and comfortable living environment. We believe that such mea-sures also lead to the creation of business opportunities, and we make efforts toward the development of businesses and technologies that contribute to a reduction in environmental burden, such as ZEB (Zero Energy Building) renovations.

Enhancing the Capabilities of Every Employee

We take steps to enhance the capabilities of every employee, as we recognize this to be our top priority for human resource training. For example, we put a great deal of effort into the education of young engineers, from a medium- to long-term perspective. This past year, we abol-ished the conventional practice of assigning newly hired civil engineers to work sites right away, and established an educational system that provides a ten-month training program. While we desire to assign these staff members to work sites right away due to a current shortage of engineers, we made this reform to ensure that no variance exists in the quality of our human resources, as they are the employees who will form the foundation of our company in the future. In the building construction business, new employees are assigned to work sites in the first year, as their training period. These employees are placed in pairs, in order to stimulate growth through friendly rivalry, and receive train-ing through on-site work experience. In addition, we have established a mechanism for incorporating measures to cul-tivate extensive experience and multifaceted perspectives, by ensuring a rotation of work by occupational category, such as making employees who are engaged in designing work experience on-site work for a certain period of time. Furthermore, we changed the employee satisfac-tion survey that we had previously conducted into an “employee engagement survey,” as a measure to solve issues in the organization. This survey is undertaken to measure and visualize the level of employee engagement, in terms of “each employee’s willingness to contribute to our company by appropriately understanding the compa-ny’s strategies and targets, and voluntarily demonstrating his/her abilities,” in order to make improvements in the future. Through the company-wide results of this survey, we were able to reconfirm our strengths, such as a high satisfaction rate for “contribution to society and rewarding work” and “a sense of unity at the workplace.” As prob-lems at each workplace were also brought to light, we started a training program to solve these issues. I will also put forth efforts to improve employee engagement, by

actively transmitting messages to elicit the motivation and capabilities of our employees.

Reinforcing the Diversity of Governance

In order to clarify the management responsibility for each fiscal year and construct our management structure in a flexible manner, our company has fixed the term of direc-tors to one year. As for outside directors, they will fulfill a strong checking function to ensure the appropriateness of business operations, and reflect their expertise regarding the management of companies in the same and other industries, into our company’s management. Furthermore, starting this year, our company invited for the first time a female outside director possessing expertise as a lawyer and work experience in the real estate industry. We expect that the Board of Directors will be revitalized through an exchange of diverse opinions on the management issues our company is facing, and this will make a significant contribution to the improvement of our company’s corpo-rate value.

Outlook for Fiscal Year 2019

Promoting Initiatives and Medium- to long-Term Reforms to Achieve the Goals of Fiscal Year 2020

In the short term, earnings are expected to plateau. In fiscal year 2019, both sales and profit are projected to decrease for various reasons, including the drop-out of temporary factors, such as the acquisition of design change projects, the progress of many low-profit construction projects, a reduction in profitability resulting from strategic orders received, and cost escalation. However, in fiscal year 2020, which is the last year of the Mid-Term Management Plan, we will focus on acquiring highly profitable orders, in order to achieve our targets and contribute to the stable growth of our company. In addition, we will do our utmost toward realizing a corporate group that can cope with the changing business environment, while reforming our construction production system and rationalizing our indirect divisions, as well as developing a business foundation from a medium- to long-term perspective, and securing and training employees who will realize the sustainable growth of our company. Finally, we kindly ask our stakeholders for their continued encouragement and support.

Representative Director, President

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consolidated net sales exceeded our targets. Accordingly, the plan is progressing smoothly as a whole.

Response to Higher Construction Costs To cope with the rise in costs for building materials, etc., we are striving to reduce costs through upfront procurement, proposals for alternative construction methods, etc., and conducting slide negotiations in accordance with contract conditions and other measures. We judge whether or not to receive orders based on costs including the increase in personnel expenses for skilled construction workers. In addition, we will conduct the modulization of construction materials (the precast concrete construction method) for saving labor, promote investment in technological devel-opment, and establish an organization for intensively supporting work sites at the time construction starts, when burdens are significant, to enhance productivity. We revised the conditions for payment to subcontractors, which are important partner companies for operating our business, in the expectation that manpower-based construction capacity will become a significant competitive advantage. In addi-tion, we actively offer services for supporting restructuring, integration, and succession of business, while businesses are discontinued and the number of new employees is decreasing due to the aging of employers and a shortage of successors in the construction industry.

Investment Strategy Our Group plans to invest a total of about 90 billion yen in our domestic construction business, new business domains, management foundation, organizations, and human resources in the nine years from fiscal year 2018, in order to achieve “Our Ideals for 2026—The Company We Hope to Be in 2026.” The ongoing Mid-Term Management Plan calls

Review of Fiscal Year 2018The construction industry’s market environment was healthy, due to strong demand for construction related to the 2020 Tokyo Olympic Games and firm capital invest-ment. Construction costs were on an upward trend but in line with our outlook. In these circumstances, the Group’s gross profit margin dropped due to the worsening of profit from some projects. However, our Group launched the Mid-Term Management Plan (2018-2020): Shinka 2020, and increased completed construction sales through the prog-ress of large-scale construction projects and expanded renovation projects. As a result, fiscal 2018 consolidated net sales totaled ¥331.4 billion (up 3.3% year on year), operating income came to 21.9 billion yen (up 2.7% year on year), and ordinary income was 22.9 billion yen (up 3.6% year on year), marking a record high since the company split. On the other hand, profit attributable to owners of the parent was 15.5 billion yen (down 3.8% year on year), due mainly to higher tax expenses, etc. Orders received came to 285.4 billion yen (down 4.7% year on year) in the wake of large-scale projects ordered in the previous fiscal year by the Tokyu Group and activities for receiving orders while we considered our con-struction capacity.

Progress of the Mid-Term Management PlanAs for the “diversification of revenue sources,” a focus of the Mid-Term Management Plan, we acquired five investment properties. While it is expected that demand will change qualitatively from a spot-revenue to recurring-revenue business model, the renovation business expanded more significantly than planned. In enhancing our management and financial foundations, we steadily accumulated consolidated core cap-ital. Furthermore, consolidated operating income margin and

Financial and Capital Strategies

Masatoshi ShimizuDirector, Senior Executive OfficerGeneral Manager, Business Administration Division

We will strive to strengthen our core construction business, make active growth investments to diversify revenue sources, and reinforce a financial foundation that can tolerate risks.


As for strategically held shares, the significance of their holdings is examined and confirmed by the Board of Directors every year, as it checks whether we can receive sufficient benefits with respect to capital cost. The shares no longer worth holding will be sold and decreased in principle, after considering the situations of issuing com-panies, market trends, etc. In the examination in the previ-ous fiscal year, it was confirmed that all of the listed shares we held remained worthwhile, but shares of an unlisted company deemed no longer worth holding were sold.

Shareholder ReturnsAs for shareholder returns in fiscal year 2018, we decided to pay a term-end dividend of 20 yen per share and an interim dividend of 10 yen, for an annual dividend of 30 yen per share (a consolidated payout ratio of 20.6%), under the basic policy of achieving a consolidated payout ratio of 20% or over, which was set considering neces-sary core capital. Earnings are estimated to decline in fiscal year 2019, but the annual dividend is to remain at 30 yen. Recognizing that the decline in performance is temporary and will not significantly affect the formation of a sound financial foundation, which is our goal, we will keep the dividend amount unchanged from the view-point of returning profit to shareholders consistently and continuously. In addition, our equity ratio is already comparable to other companies’ at 35%. Accordingly, we will flexibly discuss responsive return measures, including the payout ratio and share buybacks, after securing a core capital amount of 110 billion yen at the end of fiscal year 2020.

for investment of 6 billion yen in the domestic construction business, 16.5 billion yen in the strategical businesses (the real estate business, the PPP/concession business, other new businesses, etc.), and 1.5 billion yen in our manage-ment foundation, organizations, and human resources. As for the real estate business, we plan to invest a total of 10 billion yen and have already invested 4.4 billion yen, with the progress rate exceeding the plan. In selecting investment properties, we set original criteria for improving profitability through renovation that utilizes the characteristics of the construction business and choosing areas while anticipating demand for the replacement of old buildings with new ones after assessing risks sufficiently. As for the PPP/concession business, the management and operation of public facilities are being entrusted to the private sector due to a lack of engineers in the public sector to manage these facilities. In light of this trend, we plan to participate in projects following those of Sendai Airport and the sewerage system business of Hamamatsu City, in which we are already engaged. In addition, we will seize opportunities to invest in value chain development, in order to proceed with the urban solutions business in cooperation with each company of the Tokyu Group.

Capital PolicyWe have been accumulating core capital steadily due to our healthy performance. We aim to increase consolidated core capital to over 150 billion yen while keeping ROE over 10% exceeding equity capital costs. This core capital amount is a necessary financial foundation for expanding investment in real estate for medium- to long-term growth and tolerating risks accompanying flexible M&As, etc. This amount is com-parable to those of other semi-major general contractors.

Net sales

0

100,000

200,000

300,000

400,000

FY03/15 FY03/17FY03/16 FY03/18 FY03/19

FY03/15 FY03/17FY03/16 FY03/18 FY03/19

(Millions of yen)

FY03/20(Forecast)

262,815262,815296,393296,393

243,618243,618

320,711320,711 315,000315,000331,437331,437

Ordinary income / Net income

0

5,000

10,000

15,000

20,000


FY03/20(Forecast)

18,83918,839

22,12822,128

16,11816,11813,69113,691 12,80012,800

8,7008,700

22,93222,932

15,50415,504


0

20,000

40,000

60,000

100,000

80,000

FY03/15 FY03/17FY03/16 FY03/18 FY03/19

(Millions of yen)

0

15

30

45

75

60

(%)

44,86144,86154,23854,238

66,38066,380

79,17579,175

92,98192,981

Dividend per share / Payout ratio

0

10

20

30

40

FY03/15 FY03/17FY03/16 FY03/18 FY03/19

(yen)

0

10

20

30

40(%)

FY03/20(Forecast)

1313

2525 2626

3131 30303030

8,0248,0245,8055,805

19,76819,768

13,34013,340

23.223.2

23.923.9

25.225.232.332.3 31.631.6 35.035.0

20.020.0 20.320.3 20.520.5

36.836.8

20.620.6

Ordinary income Profit attributable to owners of parent company

Total capital Equity ratio

Dividend per share Payout ratio

*Graphs above represent the consolidated figures.

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In formulating “Our Ideals for 2026—The Company We Hope to Be in 2026” and our mid-term management plans, we put together a list of the most important long-term social issues for the Tokyu Construction Group, and identified issues of materiality through discussions with the CSR Committee. To realize “Our Ideals for 2026—The Company We Hope to Be in 2026,” we are determined to deal with these social issues in the Mid-Term Management Plan: Shinka 2020 through our business activities.

Important social issues to be given priority by our Group within the framework of the SDGs

Process of Identifying Materiality

Identifying Social IssuesAmong the United Nations’ Sustainable Development Goals (SDGs), we have identified eight goals related to important social issues to be given priority by our Group.

To help realize the 17 SDGs promoted by the United Nations, we considered potential solutions through our businesses and the expertise of the Group. We then identified eight goals that, when achieved, will help solve issues through our business activities.

The development of towns resilient to future natural disasters and the improvement of old infrastructure are important missions for the construction industry.

We will carry on the tradition of manufacturing, constantly strengthen our problem-solving skills with new ideas and engineer-ing, and continue sustainable development as an enterprise to help realize a sustainable society.

We will contribute to solving global issues such as climate change, as a member of the global community.

The most important issue is finding human resources in a business environment where the working population is decreasing. We hope to contribute to a sustainable society by improving the job satisfac-tion of diverse employees.

Management will continue to carry out these missions and enhance governance through dialogue with stakeholders.

CSR Committee DeliberationThe CSR Committee consists of the directors, auditors, and the President serving as chairman. The members have discussed our Group’s social responsibilities in terms of 1) the characteristics of Tokyu Construction, 2) the characteristics of a general contractor, 3) soundness of management, and 4) social and stakeholder needs.

STEP

2

STEP

1

Comments from participants

Human resources

Society

Environment

Provide rewarding workplaces for a diverse workforce

Foster human resources who can contribute to society in a sustainable way

Contribute to urban development that ensures safe, secure and comfortable living

Provide optimum construction solutions and create services

Improve efficiency of production processes through technological innovation

Reduce greenhouse gases and promote resource and energy conservation

Reduce and recycle construction by-products

Develop green engineering and create environmentally-friendly designs

Material Issues (Materiality) for Realizing “Our Ideals for 2026—The Company We Hope to Be in 2026”

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Identifying MaterialityBased on the results of discussions, we identified material issues to be prioritized by the Group and considered both opportunities and risks, which were reflected in four basic policies of our management strategies.

Social Issues Category Material Issues Opportunities Risks Basic Policy

Diversification and active participation of workers and respect for human rights Improve working environ-ment and job satisfaction

Human resources Diversification of individuality (consciousness, work style, lifestyle) Address long working hours and social demands for work-style reform Dealing with fewer applicants for general contractors

Promote personnel system reform

Promote work-style reform Understand and address employee needs

Increase the number of qualified workers

Difficulties of securing days off due to volume of contracts and problems with addressing diversi-fied employee needs

Innovation of H

uman Resources

and Organization

Develop a safe, secure and comfortable living environ-ment Establish a society with national resilience Pursue the principle of safe-ty-first and improve quality Transform production processes to cope with the declining working-age population

Society

Increasingly complex and diverse social needs and customer demand for safety, quality, environment, produc-tivity and cost Communication difficulties among generations and prob-lems regarding the handing down of skills due to stress from overwork and lack of mid-career workers in their 30s Commoditized market structure of the construction industry Concern about supply due to lack of skilled workers and lower productivity, etc. amid continued construction demand Improvement of construction production system through IoT, innovation, etc. (promo-tion of “Shinka” x ICT) Acceleration of qualitative change of construction investment (flow consumption to stock maintenance model and environmental needs) Changing public needs (more diverse order systems, introduction of private-sector initiatives: PPP/concession business, etc.) Risk of shrinking future mar-ket due to depopulation and weak economic growth Increased awareness of global environment

Enhance problem-solving skills

Regenerate a culture of safety

Restructure organization from a customer-centered perspective and understand and address customer needs

Restructure head office functions (enhance functions to develop company-wide optimum measures)

Create investment oppor-tunities for the systematic innovation of construction production

Utilize an affiliated renova-tion business company and restructure the wooden construction business

Try to obtain more orders for PPP/concession business

Form partnerships with other companies and main-tain and expand business scale through M&As

Expand the needs of climate change mitiga-tion and environmental improvement

Develop technologies for preventing and mitigating disasters

Develop technologies for renewing infrastructure

Lags in addressing social and customer needs

Occurrence of industrial and labor accidents (in safety, quality, etc.)

Insufficient communica-tion within workplaces due to stress from overwork and a lack of mid-career employees

Delayed measures for subcontractors

Lack of in-house sources of unique innovation

Delays in responding to stock markets

Delays in addressing changing public needs

Delays in enhancing the construction business and the diversification of revenue sources

Increasing risks of disasters due to climate change

Enhance D

om

estic Co

nstruction B

usiness

Measures against climate change Realize an energy-saving society Realize society in harmony with nature Build a resource recycling society

Environment

Strengthening corporate structure to diversify revenue sources in real estate, interna-tional and new businesses, etc. Expanding businesses in the emerging economies of Southeast and South Asia (acquire ODA projects mainly in railways and road construc-tion, and high-rise building construction projects)

Acquire specialized human resources

Increase investment capacity

Continued economic growth in Southeast and South Asian countries

Delays in securing and training human resources with high levels of expertise

Lost investment oppor-tunities Deteriorating real estate markets and volatile economies in Southeast and South Asia

Challeng

es in New

B

usiness Do

mains

Enhance corporate gover-nance Ensure compliance Ensure risk management

Governance

Risk management in con-struction, real estate, interna-tional and new businesses Enhance sustainable corpo-rate value

Acquire specialized human resources and improve risk management

Maintain high earning capacity and enhance financial foundations

Communicate our non-financial value

Failure of business risk management

Delays in the improve-ment of business management and in recruiting and training human resources Lack of engagement with investors

Enhance Managem

ent and Financial Foundations

Respective material issues are reflected in four basic policies of our management strategies (“Our Ideals”)

STEP

3


Business develop-ments in Southeast and South Asia

“Our Ideals for 2026” of the Tokyu Construction Group

We will do our utmost to deliver true value based on a vibrant corporate culture, with the aim of becoming a corporate group that can cope with the changing environment. We have the management and financial foundations in place to withstand busi-ness risks, and build a highly profitable business portfolio that is not solely reliant on the domestic construction business.

Innovation of Human Resources and Organization

Challenges in New Business Domains

Enhancing Domestic Construction Business

Enhancing Our Management and Financial Foundations

The core competency of our Group is our human resources

We will improve human re-sources training to enhance the capabilities of every employee as well as reform our personnel system and work style

We will make work highly re-warding by transforming our corporate culture in which employees can fully leverage their capabilities

As a result, we will raise our core competencies to a level of capability that other com-panies cannot easily emulate

Endeavor to reform con-struction production system (enhanced productivity and use of ICT) by improving problem-solving skills

Enhance relationships as business partners with clients and subcontractors

Focus on fields with growing demand (renovations, mid-sized wooden construction, etc.) and advantageous fields (such as railroad construction)

Aggressively pursue oppor-tunities, alliances, and M&As with other companies

Promote overseas operations in Southeast and South Asia

In real estate business, acquire profitable properties with stable yields expected to lead to stable profits

Expand PPP/concession and paprika businesses that are mostly unaffected by the shrinking domestic construc-tion market

Early preparation of seed-sowing to obtain new business and create new value

While reflecting on our past oversights, we aim to improve corporate gover-nance as well as strengthen the structure of risk manage-ment and our compliance system

Pursue an appropriate size of core capital that can respond to increased risks due to stronger and wider investment operations

By maintaining higher ROE compared to equity capital costs, we will always enhance corporate value and secure shareholder profits over the medium to long term

Human Resources and Organization New Business DomainsDomestic Construction

BusinessManagement and Financial

Foundations

Bolstering individual capabilities and making

work more rewarding for each member of the Tokyu

Construction Group

Honing our problem-solving skills to ensure safety, enhance quality, reduce environmental

impacts, boost profitability and lower sales costs

Taking on challenges and amassing achievements in

new business domains

Shoring up our management and financial

foundations

Core Competency

We aim to be a company where each and every employee can find meaning in their work, a reason for existence, and a sense that they are contributing to society.

By continuing to hone our problem-solving skills, we strive to ensure safety, enhance quality, reduce environmental impact, boost profitability, and lower sales costs, thereby providing better value to customers. In addition, we aim to achieve growth in the Japanese construction market by preparing for growing needs and showcasing our strengths.

While maintaining our core construction business, we will anticipate the changing times as we take on challenges and gen-erate achievements in a variety of business domains

Learning from past mistakes, we will shore up our management and financial foundations in preparation for changes in the operating environment. At the same time, we will meet share-holder expectations by steadily increasing corporate value

Four Basic Policies

Strategies for Realizing Our Vision

“Our Ideals for 2026—The Company We Hope to Be in 2026”

Enhance core

capital

¥150 billion or moreSecure risk tolerance

against risky investment assets

High ROE

10% or moreCreate higher ROE

exceeding equity capital costs

Acquire real estate rental properties to stabilize profitsInitiatives in the PPP/concession businessB

usiness do

mains

Enhance Domestic Construction Business

Enhance problem-solving skills Establish business partner relations Focus on renovation, wooden con-struction, railroads, etc. Seek opportunities for alliances and M&As with other companies

Expand paprika businessCreate new businesses

Expand New Business Domains

Business areas

Innovation of human

resources and organization

Compatibility

Work-style reform

Bolstering capability

Corporate culture reform

Diversity

Evaluation

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Investment plan

Sales, composition ratio, and operating income margin

Progress of KPIs for the Realization of Goals in Fiscal Year 2018

In order to complete the Mid-Term Management Plan (2018-2020): Shinka 2020, and achieve “Our Ideals for 2026,” we have proceeded steadily with various initiatives in fiscal year 2018, including the introduction of an indicator of “employee engage-ment,” as well as monitoring of our human resource and organizational reforms.

*1: “Motivation Cloud” engagement rating by Link and Motivation Inc. The survey covers all employees of the entire Tokyu Construction Group, including subsidiaries. “BB” is the fifth highest level on a scale of 11.

*2: Our target covers new worksites of Tokyu Construction (the parent company) starting from FY2018 (excluding the offices in which application is difficult)

*3: Rate of customer satisfaction for Tokyu Construction (the parent company) in private sectors (answering “Yes, we are definitely happy to order/Yes, we can also order.”): Average 95% during FY2014-16

*4: Safety index of Tokyu Construction (the parent company): (Frequency rate x Strength rate)

*5: Specific energy consumption (base unit) per construction sales of our parent company Tokyu Construction (ton-CO2/¥0.1 billion) (The reduction rate is compared to that of FY1990. (29.6 ton-CO2/¥0.1 billion)) The standard value of Tokyu Construction (the parent company) in FY1990 is calculated based on the figures recorded in FY1990 in the “CO2 Emission Survey Report” issued by Nikkenren (Japan Federation of Construction Contractors)

We plan to invest around ¥90 billion for the coming nine years to realize Our Ideals for 2026—The Company We Hope to Be in 2026 in the fields of domestic construction and new business areas as well as strengthening our management foundations, organization, and human resources

Amount of total investmentIn principle, investment will be made with our core capital. We will discuss the optimal way of raising funds by considering our management and financial situation, market environment, etc.

Total: ¥90 billion

Domestic construction business

Civil engineering and building construction businesses (including renovations and mid-sized wooden construction)

¥17 billion

New business areasReal estate, PPP/concession busi-nesses, and other new businesses (paprika business, etc.)

¥70 billion

Management foundations, organization and human resources

Employee training, ICT, etc. ¥3 billion

Fiscal Year 2017 Fiscal Year 2018 Fiscal Year 2020 Fiscal Year 2026Our Ideals Basic Policy ESG Targets KPI

Bolstering individual capabilities and making work more rewarding for each member of the Tokyu Construction Group

Vital Culture S Employees

Employee engagement survey (*1) (Introduced from FY2018) BB BBB A

No. of days worksites are closed (*2)

Closed for 4 to 5 days/4 weeks



Closed for 8 days/4 weeks

Maximize True Value

Honing our prob-lem-solving skills to ensure safety, enhance quality, reduce environmen-tal impact, boost profitability and lower sales cost E・S

CustomersSocietyPartner

companies

Customer satisfaction (*3) 95% 95% 100% 100%

Safety index (*4) 0.2 0.43 0.10 or less 0.10 or less

CO2 emissions (*5) 23.9 ton-CO2/¥0.1 billion(down 19%)(FY2014-16 average)

17.2 ton-CO2/¥0.1 billion (down 42%)（in FY2017)

23.2 ton-CO2/¥0.1 billion (down 22%)

20.0 ton-CO2/¥0.1 billion (down 32%)

Taking on challenges and amassing achievements in new business domains

Shareholders

Consolidated operating income margin 6.7% 6.6% 6.3% 7.0%

Consolidated sales ¥320.7 billion ¥331.4 billion ¥312 billion ¥350 billion or more

Resilience to the Changing Environment

Shoring up our management and financial foundations

GROE 22.2% 18.1% 13% or more 10% or more

Consolidated core capital ¥78.9 billion ¥92.6 billion ¥110 billion

or more¥150 billion

or more

Quantitative Targets of “Our Ideals for 2026—The Company We Hope to Be in 2026”

Operating Income Margin

6.7%

Fiscal Year 2017

Consolidated sales ¥320.7 billion


6.6%

Fiscal Year 2018

Consolidated sales ¥331.4 billion


7.0%or more

Fiscal Year 2026

Consolidated sales ¥350 billion or more

61%4%

20%

13%

2%

62%4%

19%

13%

2%

52%8%

22%

14%

4%

Building construction

Building renewal

Wooden building construction

Civil engineering

New business areas

Initiatives for V

alue Creatio

n


Mid-Term Management Plan (2018-2020): Shinka 2020

The Urban Solutions Business was developed by putting our plans into practice, while consider-ing the changes in our business environment from 2020, as well as the strengths of our Group.

Changes in the Environment Surrounding the Construction Industry

The Mid-Term Management Plan (2018-2020): Shinka 2020, which was formulated in March 2018, refers to the final process for actualizing our corporate vision of being “a general contractor that continues to embody Shinka,” which was established in 2011 for the milestone of 2020, as well as the start of efforts to achieve “Our Ideals for 2026—The Company We Hope to Be in 2026.”

123

Intensifying labor shortage

Growing need to enhance productivity

Shrinking demand for new construction Increase in demand for renovation

Current situation

While investment in construction remains at a high level, it is imperative to secure engineers, due to the aging of skilled construction workers combined with a low number of young workers.

OutlookFrom 2020, many employees of the baby boom generation will retire. Accordingly, it will be essential to secure engi-neers and skilled construction workers, in order to maintain our supply capacity.

Current situation

The social infrastructure constructed during or after Japan’s high-growth period is deteriorating, and there is also pressure to make facilities earthquake-resistant and environmentally friendly. Accordingly, the demand for renovation is growing.

OutlookFrom 2020, the proportion of deteriorated social infrastructure will increase rapidly, and the need for environmentally friendly facilities will continue to grow. Accordingly, the shift from a spot-revenue busi-ness model to a recurring-revenue business model will accelerate.

Current situation

The utilization of ICT at construction sites, as well as the adoption of construction methods to improve produc-tivity, etc., is progressing in order to cope with a current and future shortage of skilled workers, etc.

OutlookFrom 2020, the modularization of construction materials and the utilization of ICT at construction sites will prog-ress rapidly, along with the transformation of construc-tion production systems.

Environment Surrounding the Construction Industry

Urban Solutions Business

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BIM/CIM

Adoption of digital solutions Modularization of construction materials

i-Construction Precast concrete construction method

Centralization of three-dimensional information on building shapes and attributes

Facilitates consensus-building between construction- related players, and contributes to an improvement in the efficiency of design and construction work

Domestic construction investmentDemand for new construction is expected to peak over the medium to long term; however, this means that new construction will enter a gradual downtrend, rather than a sharp decline.

Growth projection for skilled construction workersEven after factoring in productivity improvements, it is projected that the domestic construc-tion industry will require between 2.93–3.15 million skilled workers in FY2025. At the same time, the workforce is expected to decline by roughly 1.3 million workers over the same peri-od, due to the exit from the workforce of a large number of baby boomers, along with other factors, raising the possibility of a shortage of between 770,000–990,000 workers.

Breakdown of construction industry worker by age groupCompared with other industries, the aging population is having a more pronounced impact on the construction industry, where workers aged up to 29 comprise roughly 10% of the total workforce, and workers aged 55 and above comprise more than 30%.

Building renovation demandRenovation demand is expected to continue expanding, going forward, centered on non-residential construction, with earthquake-resistance and environmental responses, etc., acting as tailwinds.

Breakdown of infrastructure more than 50 years oldThe proportion of aging social infrastructure that was original-ly established after Japan’s period of rapid economic growth is growing at a rapid pace, which is expected to result in a further expansion of demand for maintenance and repairs.

The Ministry of Land, Infrastructure, Transport and Tourism promotes the utilization of ICT in construction production processes ranging from surveying and mea-surements to design, construction, and inspections

Improve productivity at construction sites by leveraging technology such as drones for measurements and ICT for construction

Manufacture reinforced concrete construction parts at a factory, and join various parts together at construc-tion sites

Enables a reduction in the required number of on-site workers, a reduction of costs, and a stable supply of high-quality concrete building parts

FY03/13 FY03/23 FY03/33

Roads and bridges Roughly18% Roughly43% Roughly67%

Tunnels Roughly20% Roughly34% Roughly50%

River manage-ment facilities Roughly25% Roughly43% Roughly64%

Sewer pipes Roughly2% Roughly9% Roughly24%

Wharf walls Roughly8% Roughly32% Roughly58%

(10,000 persons)335 338 341293–315

216 77–99

Number of additionally

required workers

Number of employed

workers in 2025

Number of workers required in 2025

201420132012

(Trillion yen)

0

20

40

60

80

98 18161412100806040200 25

-4.3% +4.0%

Gradual contraction

?

(Trillion yen)

0

6

3

9

12

15

181716151409 10 11 12 13

7.87.88.48.4 8.58.5 9.09.0

11.011.09.99.9

11.811.812.712.7 12.612.6

13.113.1

ResidentialResidential

Non-residentialNon-residential

(%)

199010

15

20

25

30

35

92 94 96 98 2000 02 04 06 08 10 12 14

All industries (29 years old or younger)All industries (55 years old or older)Construction industry (29 years old or younger)Construction industry (55 years old or older)

1: Transforming our human resources and organization to elicit employee motivation and capabilities

2: Reinforcing the domestic construction business with a customer- centered perspective and problem-solving skills

3: Promoting the diversification of revenue sources by expanding strate-gic businesses

4: Shoring up our management and financial foundations in support of heightened profitability

Source: “Toward Revitalization and Evolution: Long-Term Vision for Construction Industry” issued by Nikkenren (Japan Federation of Construction Contractors)

Source: “Construction Investment Outlook” issued by the Ministry of Land, Infrastructure, Transport and Tourism

Basic Policy

Image of BIM

Factory Manufacture

ConstructionConstruction Planning / Process Control

Cost ManagementOperation / Maintenance

Renovation

Demolition

Project Planning Stage

Design and Planning

Basis / Implementation planningDesign / Structure / Facilities

Analysis

Initiatives for V

alue Creatio

n

Securing co

nstruction

resources m

ore actively


Enhance the sophistication of the construction industry through early adoption of cutting-edge technology

Strategic Direction Considering Changes in the Business Environment

We established the medium- to long-term strategic vision that we should pursue, based on three perspectives regard-ing changes in the business environment.

Changing from the current

spot-revenue model to a

recurring-revenue model

Receiving

ord

ers m

ore actively

Transform

ation o

f constructio

n p

rod

uction system

s

Gro

wing

need to

enhance p

rod

uctivityIntensifying

labo

r shortag

eIncrease in

renovatio

n dem

and

Expansion and diversification of our business portfolio

Target a business portfolio that is resilient to changes in the environment, by actively engag-ing in businesses with a strong recurring-revenue aspect, such as renovation

Utilization of the comprehensive strengths of the Tokyu Group

Strengthen our proposal and project origination capa-bilities to respond to various needs, such as utilization of land, renovations, and increasing property values

Urban Solutions Business

Tokyu Construction

Tokyu Group

Customers

Group cooperation

Utilize the comprehensive capabilities of the Tokyu Group.

Tokyu Construction

Regional superior general contractors, etc.

Secure construction resources via collaboration with other companies.

Subcontractors network

Ⅱ

Ⅲ

Tokyu Construction

IoT

AI Robots

Increase recurring-revenue business

Construction subcontracting (spot-revenue businesses)

Mid-Term Management Plan (2018-2020): Shinka 2020

Enhancement of on-site capabilities through operational reforms

Innovate operations through investment in and early adoption of cutting-edge technology, from a medium- to long-term perspective, and aim for further improve-ment of on-site capabilities.

Ⅳ

Strengthening collaborations with regional superior contractors and subcontractors

Secure construction resources from a medium- to long-term perspective, by proceeding with alliances and M&A

Ⅰ

New construction methods

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Our Original Business Model for Generating Stable Cash Flow

We will aim to shore up the Tokyu Construction Group’s overall earning capacity by not only strengthening Group com-pany collaboration, but by reinforcing necessary solutions and establishing a comprehensive value chain.We intend to establish a unique business model unlike other companies by steadily implementing these initiatives.

As the construction arm of the Tokyu Group, Tokyu Construction has grown by engaging in “infrastructure management” as a key player in infrastruc-ture development for railways, buses, and roads in urban development projects, including the development of Shibuya and Tokyu Tama Garden City. Going forward, our Group will carry out work in its “Urban Solutions Business” to, reinforce necessary solutions, and establish a comprehensive value chain, by actively promoting alliances and M&A, and utilizing good relationships with local governments and companies, based on the charac-teristics of each region, in order to achieve sustainable growth even after the 2020 Tokyo Olympic Games. As chairman of the Strategy Meeting established this year, I intend to accelerate practical operations in the Urban Solutions Business in order to generate stable medium- and long-term cash flow.

Message from Vice Chairman Imamura

Toshio ImamuraRepresentative Director,Vice Chairman

Fleshing out the Urban Solutions Business

Business overview

by step

Req

uired actions

Consolidate the local information of various Tokyu Group companies

Form alliances with local top-tier gen-eral contractors and engage in M&A

Collect information on the challenges and needs of local compa-nies and landowners

In addition to design and construction, make proposals regarding property utilization (leasing, etc.)

Secure partners to take on small-scale projects that are difficult for Tokyu Construction to handle

Handle all aspects through renovations, and ensure long-term contact with customers

Leverage the comprehensive capabilities of the Tokyu Group to support all aspects, through operation

Local information and customer

networks

Proposal capa-bilities other

than design and construction

Tokyu Construction Tokyu Group

Leasing expertiseFlexible construction capabilities

Construction capability

Tokyu GroupTokyu Renewal

Make joint pro-posals with Tokyu Group companies

Hire human resources with property leasing expertise

Form alliances with regional superior contractors and partners, and engage in M&A

Enhance on-site capability through operational reforms

Hire human resources with property leasing expertise

Strengthen coop-eration within the Tokyu Group

Strengthen coop-eration with Tokyu Group companies

Engage in M&A of renovation spe-cialists and other business operators

Enhance on-site capability through operational reforms

General picture of the urban solutions business and necessary actions

Project sourcing Property proposals Tenant leasingDesign and

constructionMaintenance and

management Renovation

Ensure interactions with customers from upstream

Tokyu Construction functions Tokyu Group functions Areas to strengthen going forward

Initiatives for V

alue Creatio

n

Ensure continuous interactions with customers


Our Group focuses on civil engineering and building construction as core businesses. We are also working on new pillars of strate-gical businesses including real estate and international businesses to increase competitiveness and diversify revenue sources. We aim to enhance our corporate value in a sustainable manner through the development of a stable management foundation.

Civil Engineering BusinessWe establish national land infrastruc-ture that ensures safety and security in people’s daily lives. Furthermore, we are proactively engaged in environ-ment-related fields.

• Railways, roads, tunnels, bridges, and other construction, reconstruction work after earthquakes, etc.

Orders Received Construction Sales

Breakdown of Orders ReceivedCivil Engineering

29.6%

Breakdown of Construction SalesCivil Engineering

22.8%

Tokyu Group ¥14.4 billion18.6%


Other ¥63.3 billion

81.4%


81.9%

Building Construction BusinessWe engage in community-based urban development throughout Japan, such as development of Tama Garden City and redevelopment in Shibuya.

• Construction of commercial facilities, hotels, offices, housing, factories, hospi-tals, and distribution centers, renovation and wooden building construction

Real Estate BusinessWe pursue an area strategy in such places as the areas surround-ing stations along Tokyu train lines. This is done in cooperation with Tokyu Group companies, focusing on acquisition of prop-erties and on the rental business by taking advantage of the characteristics of our core construction business.

• Rental business, equivalent exchange business, etc.

Major Achievements

Total

¥77.7billion

Total

¥70.3billion

Orders Received Construction Sales

Breakdown of Orders Received

Building Construction

70.4%

Breakdown of Construction Sales

Building Construction

77.2%




89.1%


76.1%

Total

¥185.2billion

Total

¥238.2billion

Conversion officePart of “Kojimachi Crystal City West Building” (which is owned under condominium ownership)Facility name “THE MOCK-UP”

* The pie chart represents the amount of construction business (non-consolidated) for the fiscal year ended March 31, 2019 (including overseas).

Conversion office“Crescent Hills Minami Aoyama”

Business Domains and Strategies

Investment p

rop

erties (low

difficulty)

Small and medium scale

Large scale Develo

pm

ent pro

perties (hig

h difficulty)

Major developers

Small- to medium-sized funds, new developers

Private or operating companies

J-REIT

Strategies• Focusing on asset investment with the major business domain

being the real estate rental business• Acquiring investment properties with high investment yields

through our unique measures to increase added value, such as renovation and seismic reinforcement

Business domain we focus on: Real estate rental (such as office buildings

and rental apartments)

At a Glance (Business Overview)

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Co

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(Millions of yen)

6,000

4,000

2,000

10,000

8,000

FYE Mar. 2015

FYE Mar. 2016

FYE Mar. 2017

FYE Mar. 2018

FYE Mar. 2019

FYE Mar. 2015

FYE Mar. 2016

FYE Mar. 2017

FYE Mar. 2018

FYE Mar. 2019

FYE Mar. 2015

FYE Mar. 2016

FYE Mar. 2017

FYE Mar. 2018

FYE Mar. 2019

FYE Mar. 2015

FYE Mar. 2016

FYE Mar. 2017

FYE Mar. 2018

FYE Mar. 2019

(Millions of yen)

(Millions of yen) (Millions of yen)

0

60,000

40,000

20,000

80,000

0

0

200,000

100,000

300,000

0

20,000

10,000

30,000

61,86461,864

190,082190,082

11,26611,266

24,40124,401

21,26621,266

27,56827,568

23,42323,423221,870221,870

160,890160,890

236,898236,898 238,241238,241

5,0025,002

8.1%8.1%

5.9%5.9%

11.0%11.0%

8.4%8.4%9.9%9.9% 9.7%9.7%

14.1%14.1%5,4225,422

6,9176,917 7,1987,198

9,8929,892

64,62664,62669,84569,845

73,86373,86370,38170,381

Profit MarginGross Profit

Profit MarginGross Profit

13.2%13.2%

11.6%11.6%

9.8%9.8%

Net SalesMajor Achievements Gross Profit/Profit Margin

Major Achievements Major Achievements

International Business Other BusinessesMaking the most of the skills and know-how that we have cul-tivated, we engage in business in Southeast and South Asian countries, including Thailand, Singapore, Indonesia, Myanmar, Vietnam, and Bangladesh.

• Development of railways and roads, construction of high rise buildings and factories

We are redoubling our efforts in the PPP/concession business and the paprika business as new business domains.

• PPP/concession business• Paprika business

Mass Rapid Transit System in Jakarta

Net SalesMajor Achievements Gross Profit/Profit Margin

FLIGHT OF DREAMS construction work (Central Japan International Airport Co., Ltd.) New construction work for the Shibuya Station South District Project (TOKYU CORPORATION) (Tentative name) Project for constructing a new building for the Shibuya Ward Office (Mitsui Fudosan Residential Co., Ltd.)

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* Figures above are for Tokyu Construction only (including overseas affiliates) for both Civil Engineering and Building Construction.

Operation of a public sewage treatment plant (for the Seien area) in Hamamatsu City

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National Route 45 roadwork in the northern part of Miyako City (the Ministry of Land, Infrastructure, Transport and Tourism) Sumida River rain water trunk line No. 3 (Bureau of Sewerage, Tokyo Metropolitan Government) Rebuilding work of pedestrian bridges on National Route 246 near Shibuya Station’s East Exit (the Ministry of Land, Infrastructure, Transport and Tourism)

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Overview of Each Business


Civil Engineering BusinessWe are enhancing our on-site capabilities by proactively utilizing three-dimensional data. We will strengthen the civil engineering busi-ness by steadily implementing measures to receive more orders in our focus areas.

Yushi TsukuiDirector, Senior Executive OfficerGeneral Manager, Civil Engineering Division

In the civil engineering business, our company is pursuing a business strategy based on three policies in the Mid-Term Management Plan: “Enhancing on-site capabilities,” “Enhancing domestic construction business,” and “Taking on challenges in new domains”. In fiscal year 2018, the first year of the management plan, profit exceeded our initial estimate thanks to temporary improvement factors, and we are steadily working on medium-to long-term measures in order to continuously achieve results. With the aim of improving operational efficiency and produc-tivity, we are endeavoring to foster greater employee awareness, and facilitate more active communication toward work-style reform. In particular, we are enhancing our on-site capabilities by proactively utilizing three-dimensional data, which will markedly improve the capabilities of our employees to remain aware of construction conditions and issues at work sites. Regarding railway construction in which our company special-izes, railway companies continue to vigorously make capital invest-ments, and we are striving to receive orders from these companies on a stable basis, and to maintain and expand revenue through

our efforts towards enhancing on-site capabilities. Meanwhile, we are focused on mountain tunnels, shields, caissons, and high elevated bridges in general civil engineering projects (for such clients as government and municipal offices, including the Ministry of Land, Infrastructure, Transport and Tourism, and the Tokyo Metropolitan Government, as well as Japan Railway Construction, Transport and Technology Agency and Nippon Expressway Company (NEXCO)). We receive orders strategically, by not only taking advantage of our experience regarding related construction projects, but also obtaining the professional experience of our civil engineers required for bidding. Although achieving good results in new business domains often takes time, we are steadily employing a bold approach. We believe that the knowledge we have acquired through the airport and sewerage system concession businesses can be of great use in future privatization projects. We will work steadily on each measure and enhance the civil engineering business as a whole, while boosting the capabilities of our human resources and organization.

Current Status and Issues

Plan and Direction Major Progress in Fiscal Year 2018

Enhancing on-site capabilities

• Pursue safety, quality, environmental friend-liness, productivity, and cost reductions

• Improve operational efficiency and productivity

• Build a system to increase employee satisfaction• Enhance co-creation with subcontractors

• Promoted the use of ICT, and enhanced our core operations utilizing three-dimensional data• Improved operational efficiency by adopting logical approaches• Developed human resources through an enriched ten-month-long training program for

new employees• Increased communication with subcontractors, systematically secured our labor force,

and provided them recruiting support

Enhancing domestic construction business

• Enrich civil engineering for railways• Enhance general civil engineering

• Participated in a railway project from the planning phase• Focused on receiving orders for urban civil engineering projects involving shields and

caissons, and large-scale projects for mountain tunnels

Taking on challenges in new domains

• Enhance international business• Enhance the PPP/concession business• Expand business through collaborative

work and M&A

• Engaged centrally in a transportation-related infrastructure construction project supported by Official Development Assistance (ODA) of the Japanese government; increased the number of workers in order to expand the project’s scale

• Participated centrally in concession projects for waterworks, sewerage systems, and roads as an operator; cultivated knowledge of project management by taking part in Japan’s first sewerage system concession project (for the sewage treatment plant for the Seien area of Hamamatsu City)

• Promoted the Private Finance Initiative( PFI) Promotion Group to the New Business Development Department from April 2019, in order to carry out measures at an accelerated pace

• Targeted projects for large-scale updates, maintenance and repair, and inspections, and put together concrete proposals

Business Strategies

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Improvement of operational efficiency of employees at work sites

Start of the Infrastructure Asset Management (IAM) Promotion Group

Participation in Japan’s first sewerage system privatiza-tion project as an operator

We have applied a theoretical approach called the Theory of Constraints (TOC), which leads to overall optimization by iden-tifying constraints impeding overall opera-tional flow and eliminating stagnation points in the operational process, to each work site, under the support of the Work Style Reform Department at the head office. In order to improve operational effi-ciency, the manager oversees the opera-tional processes in which each subordinate is engaged through visualization with sticky notes, determines priorities, and clearly allo-cates tasks to each staff to ensure that they are focused on their own duties. In addition, we also visualize tacit knowledge in order to share know-how.

We have established a new depart-ment that promotes infrastructure asset management (IAM), with a view toward the possibility of full-scale entry into the IAM business. This department will support the maintenance, management, and renewal of infrastructure construction projects such as railways and roads, and apply effective and efficient maintenance and management technology to society, from a medium- to long-term perspec-tive. As a first step, we have launched “iTOREL,” a system for inspecting and examining the full cross sections of tun-nels, utilizing cutting-edge robot technol-ogy and AI-based diagnostic technology.

In April 2018, a special purpose company (SPC) set up by five companies, including Tokyu Construction, was entrusted with operation of the sewage treatment plant for the Seien area in Hamamatsu City for the next 20 years, which represents the first sewerage system privatization project in Japan. Our company proactively devotes ourselves to the PPP/concession business in the recurring-revenue area, which is confronted with issues such as aging infra-structure, shrinking financial resources, and shortages of public civil engineers, and in which proactive adoption of the vitality of the private sector is expected, in an effort to diversify revenue sources.

Proactive Use of ICT for the Further Prosperity of Shibuya— i-Construction in Urban Civil EngineeringA variety of technologies, such as ICT and Building and Construction Information Modeling/Management (BIM/CIM), are being used proactively in the construction industry through an approach called i-Construction, led by the Ministry of Land, Infrastructure, Transport and Tourism. Our company is utilizing these technologies in the Shibuya redevelopment project. Conventional methods, which employ only two-dimensional drawings to share construc-tion plans and related information, are inade-quate for the complex project of redeveloping Shibuya, in which the civil engineering division and building construction division must simultaneously engage in their respective construction operations in close proximity, while maintaining city functions in the area. Accordingly, since 2013, our company has been engaged in an effort to integrate the BIM of the building construction business and the CIM of the civil engineering business, and based on a concept called UiM*, we have rendered the entire city of Shibuya in three-dimensions, and have been using this idea to study the redevelopment of Shibuya. Especially in the projects involving the Tokyo Metro Ginza Line at the East Exit of Shibuya Station and SHIBUYA STREAM, construction planning in 3D space and using the 4D-CIM

model, in which a time axis is also added to the 3D model, has contributed to swifter consensus building with the parties involved. We are making preparations for a project at the West Exit of Shibuya Station, with the proactive use of UiM in mind. We will steadily and reliably propel the project forward, maintaining the project schedule, by grasping potential construction risks as expeditiously as possible in cyberspace, which is a digital twin that reproduces real-world conditions, and applying the identified risks to the real world. Our company has been thriving, together

with the development and prosperity of Shibuya. We will accumulate experience through this redevelopment project, including the locations of underground pipes, in UiM, which is a digital twin, in order to pass our business experience down to the employees who will be working at our company 50 to 100 years from now. We have been, and will con-tinue to remain open to proactively adopting new technologies toward the further creation of future prosperity in Shibuya.

*UiM: Urban information Modeling/Management

Left: 4D-CIM model at the Tokyo Metro Ginza LineAbove: UiM model at the West Exit of Shibuya Station

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Enhanced operations with a customer-centered perspective

• Organizational strengthening of upstream sales through the integration of sales and construction

• Nurturing human resources and strengthen-ing engineering capabilities in response to customer needs

• Increase in the ratio of design and construction projects (up approximately 5% year on year)

• Increase of projects involving participation of the construction division from the sales stage (up approximately 10% year on year)

• Proposal for and adoption of our unique TQ-MIX* construction method

Increased on-site capabilities

• Adoption of more labor-saving construction methods, and strengthening of the support system to improve productivity

• Improvement of on-site management (safety, quality, environment, process, and cost)

• Labor saving due to front-loading utilization of Building Information Modeling (BIM)

• Leveling of on-site operations through the work site support group• Sharing of cases of labor-saving construction methods and support for the

proactive adoption of such methods

Taking on challenges in new domains

• Strengthening of the renovation business (concentration of this business in the subsidi-ary TOKYU RENEWAL CO., LTD.)

• Focus on the mid-sized wooden construc-tion business

• Expanding support for international business

• Greater-than-expected business results in the initial year of business con-centration, thanks to mutual cooperation

• Combination of our Group’s building health monitoring technology and each company of the Tokyu Group

• Stimulating demand with the “MOC+” brand (This expresses our Group’s desire to contribute to the creation of comfortable urban spaces by utilizing timber (moku).)

• Support for receiving orders for overseas high-rise buildings

Business Strategies


*See P.33 “Topics on Business Strategies- 1 ” for details


Building Construction BusinessBy adopting a customer-centered perspective, strengthening our human resources and orga-nization, and leveraging ICT and labor-saving construction methods, we will create a busi-ness foundation that is capable of coping with the changing business environment.

Motoyuki TakagiDirector, Senior Managing Executive OfficerGeneral Manager, Building Construction Division

Current Status and IssuesIn preparation for a harsh business environment, fiscal year 2018 is the first year in which a plan for reorganizing both sales and construction work was executed, with the aim of constructing a customer base that will not be influ-enced by economic fluctuations and price competition. In the beginning, there were challenges that accompanied the change in the organizational structure. However, we believe that the new organization was able to achieve a smooth start by addressing these challenges one by one. Along with the start of the new organization, the mea-sures for achieving “Our Ideals for 2026—The Company We Hope to Be in 2026” were also implemented. Although progress rates vary and it will take time for the effects of some measures to become apparent, they are progressing smoothly as a whole. For example, the newly established work site support group, which aims to improve operational efficiency and quality by allocating resources and front-loading tasks such as construction

plan formulation at the start of on-site construction proj-ects that require significant workloads, has already started producing results. Currently, efforts are being made to optimize the flow of business processes from the sales phase of construction to building completion, and effi-ciency is being further improved. Furthermore, in order to strengthen our sales capabil-ities, the number of sales personnel among construction engineers has been increased by roughly 50%, and a fur-ther increase is planned. Although this is not a measure that will produce immediate effects, it is hoped that it will lead to a nurturing of sales personnel, in order to meet the future needs of customers. In the future, in response to demands for the elimina-tion of long working hours and work-style reform, we will proactively apply BIM and adopt labor-saving construc-tion methods, with the aim of further labor saving.

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Adoption of our unique framing method through strengthened upstream sales (TQ-MIX framing method)

Development of a conveying robot to tackle the labor shortage issue

Provision of solution services to cope with changes in demand for the recurring-revenue busi-ness model

The “TQ-MIX framing method” is our original RCS framing method, in which a framework is constituted by reinforced concrete pillars and steel beams. By taking advantage of the strengths of each material, it is possible to build high-quality, low-cost buildings with long span spaces that display increased rigidity and reduced horizontal seismic shaking. Thanks to sales from the upstream stage, proposals that matched customer needs were adopted, and we have received orders. This framing method is expected to be applied to the construc-tion of large-scale warehouse facilities for the distribution of goods, the demand for which is expected to remain strong.

In order to address the worsening labor shortage problem, we have engaged in the joint development of a convey-ing robot for work sites, with the aim of improving operational efficiency by roughly 30%. This robot can flexibly adjust to the ever-changing environment at a construction site, and can easily be used by skilled on-site construction workers. We are developing this robot for practical use, with specs that allow it to deal with steps in corridors, and prevent malfunc-tions even in harsh working environments, with dust, etc.

In cooperation with the companies of the Tokyu Group, namely TOKYU RENEWAL CO., LTD., its communications Inc., and TOKYU FACILITY SERVICE CO., LTD., our company is planning to develop and release a new solution service for disaster prevention and business continuity, called “Dr. BC Push.” We provide building structure assessment services, a variety of information, and one-stop support for the management and operation of buildings in normal circumstances, at times of earthquakes, and during the subsequent recovery period. In addition to supporting business continuity for building owners and facility managers, we will make efforts to meet the demand for renovation work.

Labor saving through promotion of BIM* application at work sites

Front-loading during construction work (on-site distribution of a structural model that supports BIM)

Structural model that supports BIM (“first model”) Application of “first model” at work sites

Distribution

In order to promote front-loading during construction work and streamline on-site operations, we have started distributing a structural model that supports BIM (“first model”) at each work site, at the start of construction. The distributed model is utilized at the site as a construction BIM, and applied to an examination of the construction plan, etc. Visualizing the work procedure with BIM, and sharing it with employees and on-site skilled construction workers makes it possible to select the optimal procedure, and helps

to improve the efficiency and safety of the operations. In addition, it can ensure the consistency of multiple drawings, such as architectural design, structural, and equipment plans, and prevent losses in profit due to operational rework. Furthermore, it is possible to check the suitability of work in detail, and build a consensus with the client and designers in three dimensions, thereby improving the speed of decision-making. In the future, we plan to utilize the quantitative information provided by BIM

to reduce the burden of on-site quantita-tive calculations, etc., to achieve a further streamlining of business operations.

* BIM stands for Building Information Modeling, and is a solution for utilizing information in a building database produced by adding data regarding attributes, such as cost, finishing details, and management information, to a three-dimensional digital model of a building constructed on a com-puter during various types of construction processes, including design, construction, maintenance, and management.

Construction step model

Shop Drawing (detailed floor plans, building frame drawings, cross-section plans)

VR and MR

Coordination of steel frame and equipment data

Finishing details and Rebar Arrangement Details

Maintenance and management

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Disaster prevention and business conti-

nuity solution Dr. BC Push

Comprehensively supporting three stages to enhance security and safety of facilities

4D-DOCTORUnderstanding of the condition of the building structure and age-related deterioration

Information around building such as rainfall, heat stroke and train service

Disaster-related information of neighboring local governments (earthquake, heavy rain, landslide, etc.)

Information on neighboring local governments, etc.

Building management using the information above

Evacuation instructions to tenants using the information above

Building management to support business continuity

Structural damage assessment in times of earthquake disasters

Recovery support for facilities

BC building management

iTSCOM TV PUSH

Normal circumstances During the recovery periodAt times of earthquakes and other natural disasters



According to the Mid-Term Management Plan that started in April last year, the real estate business was recognized as one of the strategical businesses for diversifying revenue sources, the “Real Estate Division,” which specializes in the rental of real estate, was established. We aim to expand the real estate business by establishing new investment criteria and management systems. Last fiscal year, development of the organization’s bases and the staffing system of the new business divi-sion was basically completed a good start. While prices are skyrocketing and yield is declining in the real estate investment market, we acquired investment properties (five buildings) worth 4.4 billion yen in the first fiscal year, as we aim to invest 10 billion yen over the three years of the Mid-Term Management Plan.

The Real Estate Division will actively acquire invest-ment properties, including mainly office buildings, commercial facilities , and rental apartments, to own them in the medium and long term. The purpose is to secure revenue from real estate rental. It is possible to boost profitability and participate in projects that are difficult for other companies to join by utilizing the characteristics and strengths of our company, a gen-eral contractor and a member of the Tokyu Group that focuses on Shibuya and areas along the Tokyu Line. For example, in order to rent out our properties, we are proceeding with renovations for aseismic reinforce-ment and for legal compliance purposes, conversions into small offices. We will continue such activities by drawing on our characteristics.

Real Estate BusinessWe will establish a stable medium to long-term revenue base by acquiring rental prop-erties, while utilizing our characteristics and strengths as a general contractor and expand-ing it as a strategical business.

Junichi OmuroGeneral Manager, Real Estate Division

Current Status and Issues


Obtaining the know-how to acquire investment properties

Secure and develop skilled staffs in charge of acquiring investment properties

• Recruited specialized personnel from the Tokyu Group

• Developed a staffing system for recruiting mid-career workers and others, which made a good start

Develop an information network • Doubled the volume of information on investment property listings, through the utilization of the information network of the Tokyu Group, etc.

• Streamlined the information-gathering process, through the cementing of relations with trust banks, brokerage firms, management companies for our existing investment properties, etc.

Streamlining our portfolio

Maximize profits from existing investment properties

• Implemented renovations for improving the value of each building

• Maintained a high occupancy rate through enhanced leasing

Carry on an appropriate portfolio strategy

• Acquired five investment properties

• Proceeded with renovations that improved the functions and value of each building

Business Strategies

Topics for the Division

F O C U S

We acquire office buildings and commercial facilities to own them in the medium and long term and try to improve their value in order to develop high-quality spaces.

*The areas we focus on: Shibuya, five wards in central Tokyo, and areas along the Tokyu Line

Our Company’s Investment Properties

Governance in the Real Estate Business

Offices

35%

42%

11%

27%

54%

31%

Shops Land Five wards in central Tokyo Shibuya

Areas along the Tokyu Line

Inner: Rental area ratioOuter: Rent ratio

35%

41%

27%

47%

38%

12%

Portfolio of our investment properties

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Chiyoda Dogenzaka Bldg. (Shibuya)

Positioning “Shibuya,” which is the base of the Tokyu Group, as the area we focus on most, we acquired this property to own it and contribute to the development of the area. (Acquired in March 2018)

MCC Kanda-iwamoto-cho Bldg. (five wards in central Tokyo)

We proceeded with the acquisition of this kind of office building that would be occupied by start-up firms, and small and medium-sized real estate whose total floor area is around 300 tsubo. (Acquired in March 2019)

IVY WORKS

We buy office buildings, conduct aseismic reinforcement and correct them in accordance with the Building Standards Act by utilizing our strengths as a general contractor. Afterward, we renovate them to construct small offices and operate the properties to be rented, under the assumption that we will hold them in the medium and long term.

We renovated this building, which is favorably located three minutes on foot from Sendagaya Station on the JR Chuo-Sobu Line and had been occupied by a design company, to transform it into an office building for creators. We created a property that offers creative lifestyles in an urban center, where the four seasons can be enjoyed. We built a running station on the first floor. On the rooftop, we con-structed a garden for barbecuing. We adopted a customization plan for the office sections on the second to sixth floors, so as to offer ideal creative offices and showrooms.

Location: Sendagaya, Shibuya WardSite area: 315.84 m2 Building structure: SRC structure, 6 stories

above ground Total floor area: 947.41 m2

Building completion: 1974Acquired in: 2016

Uses Areas

Our Renovation of Rental Properties

Before After

[Real Estate Transaction Review Board]We review each property after inviting staff from specialized departments, including the Corporate Planning Department, the Legal Department, and the Finance & Accounting Department, and real estate experts from outside the company. Properties are risky assets that could affect our business performance according to market conditions. As we will expand our acquisitions, we review them every quarter to check the condi-tions of each one and the outcomes of the real estate business.

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ODA projects

Beside our forte in railways construc-tion, we shall expand our target proj-ects into development of roads and other transportation infrastructure

• First Mass Rapid Transit in Jakarta, and first contracted work by a Japanese contractor in Bangladesh. Both projects were evaluated highly.

• Current ongoing ODA projects in Vietnam (construction of an elevated expressway in Hanoi) and Myanmar (construction of a road on a bridge and large-scale upgrades to railroads in Yangon)

Private sector projects

Increase the rate of successful bidding for non-Japanese projects

• Local incorporated companies are encouraged to secure more tenders from non-Japanese companies

• To support other Japanese companies, including developers, who have the intention to expand their business overseas and get established in the local market

High-rise building projects

Select our potential projects in order to enhance our project portfolio

• In order to embrace the challenge of big scale projects, we collaborate with influential local partners for business venture and construction

Business Strategies

International BusinessWe shall strengthen our ODA projects and endeavor to construct high-rise buildings as we fortify our business structure and manage the risks distinctively to overseas markets.

Shigehiko ShibusawaExecutive OfficerGeneral Manager, International Division

Current Status and IssuesThe international business is one of the target businesses for diversifying sources of revenue in the Mid-Term Management Plan. We are focusing on ODA projects for the development of infrastructure which including railways and roads from the Japanese government in Southeast and South Asia. We are also expanding our construction business to non-Japanese private sector companies and shall actively participate in the tendering of high-rise build-ing construction. Currently, we have branch offices in six countries, namely Thailand, Singapore, Indonesia, Myanmar, Vietnam, and Bangladesh. We have joint ventures with local corporations in Thailand, Indonesia, and Myanmar as well. For ODA projects, we have successfully completed a depot for Mass Rapid Transit System in Dhaka, the cap-ital city of Bangladesh and development of Mass Rapid Transit System in Jakarta, the capital of Indonesia for the first time. We are currently constructing a road on a newly built bridge and carrying out large scale upgrading of existing intercity railways in Myanmar.

In these ways, we have contributed to the develop-ment of social infrastructure in each country with our advanced technology. In order to have a continuation of ODA projects, we dispatched expertise from our engi-neering section in Japan to strengthen the ODA busi-ness structure. In addition, we shall not limit ourselves to Japanese fac-tory projects but also participate in other building construc-tion projects by engaging local staff and working closely with local contractors so as to strengthen the bidding process such as tendering for high-rise building projects. As for the risks unique to overseas markets, we have forti-fied our risk management by enhancing head office functions. In addition to the on-site experience and achievements accumulated so far, we will facilitate the involvement of more experienced national staff and expand our business by leveraging a small number of Japanese employees.


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Construction of an elevated road for building of a bridge across the Bago River in Myanmar

Construction of a depot for railcars in Bangladesh

Construction of a large-scale railway spanning 116 km in Myanmar

This is part of a project for building a large bridge, which will serve as a route for living and logistics in the Yangon district. The groundbreaking ceremony was held in February 2019. Upon completion, it is expected to relieve traffic congestion, improve the safety of users, enhance distribution productivity and contribute to the development of the Myanmar economy. Prior to this work, we have constructed the New Thaketa Bridge in Yangon City which was opened in August 2018 as the first ODA project in Myanmar. With this experience, we have been successfully awarded this project and therefore created a continuous growing environment for Japanese and local staff.

This is the first ODA project for con-structing a depot for railcars in the Bangladeshi capital of Dhaka, The main works consist of three types of soil and ground improvement works and embankment construction. Despite the terrorist attack in July 2016, we took strict security measures while providing high quality and managed to complete the work successfully in October 2018. It would not have been possible without the support from the head office divi-sions and teamwork from the local staff, which were rated highly by the client.

Our company was awarded a project to upgrade the existing railway of 116 km (located the farthest from Yangon) between Yangon and Taungoo (about 267 km) in October 2018. The This project is part of Yangon – Mandalay Railway Improvement Project Phase One (total spanning about 620 km) connecting Myanmar’s largest commercial city of Yangon with Naypyidaw, the capital, and Mandalay, the second largest commercial city.

Construction of Mass Rapid Transit, JakartaThe capital of Indonesia, Jakarta, is densely populated. The increasing vol-ume of road traffic to the city center has resulted in severe congestion and pollu-tion and development of a railway net-work poses an important challenge for the government. With assistance from Japan, construction on Indonesia’s first mass rapid transit system began in November 2013 and took about five and a half years. Services started operating in March 2019. In this project, our company was in charge of the CP101 elevated span and the CP102 span (a total of 5.9 km), includ-ing three stations and the railcars depot with an area of 8 ha. We adopted a con-struction method that suited the condi-tions whereby there was no free space beneath bridges and without blocking existing roads. In the construction of an elevated prestressed concrete box-girder bridge, it was technically difficult to build a steeply curved bridge, in particular with a bending radius of 180 m based on the balanced cantilever method. As the construction took place above expressways and major roads in

operation, we exercised a high-level of safety control, including measures for pre-venting falling objects, etc. This project involved a total man-power of about 1,800 people. We have successfully completed the project with support from Japanese and local staff by building a trusting relationship despite differences in cultures and customs. This not only strengthens the ability of Japanese staff but deepens their experi-ence for future overseas projects.

Our construc-tion zone

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Feature Article

Project to Construct the New East Tower in the Shibuya Station District(SHIBUYA SCRAMBLE SQUARE)

The ever-changing area around Shibuya Station is being redeveloped, report-edly on a once-in-a-century scale. Tokyu Construction is building another new landmark in Shibuya following SHIBUYA STREAM, which started operation in September 2018 —


Overview of Work [Building Summary] Project name: Phase I of SHIBUYA SCRAMBLE SQUARE

(East Tower)

Owned by: TOKYU CORPORATION East Japan Railway Company Tokyo Metro Co., Ltd.

Construction site: 2-24-12, Shibuya, Shibuya-ku, Tokyo

Usage: Offices, shops, observation facilities, parking spaces, etc.

Total floor area: Approx. 181,000 m2

Number of floors: 47 stories above ground, 7 underground

Height: Approx. 230 m

Scheduled opening: November 1, 2019

Overall Roadmap for Redevelopment Project in Shibuya

Overall Roadmap for Redevelopment Project in Shibuya

Tokyu Construction contributes to creating value that opens up the future of Shibuya by not only engaging in the construction of facilities representing Shibuya, such as SHIBUYA109, but also serving as a driving force of this ambitious once-in-a-century project, as a “general contractor in Shibuya.”

1960s –Shibuya redevelopment

2027Planned completion

2008 2020 2027

1989Bunkamura

1979SHIBUYA109

2000SHIBUYA MARK CITY

1999QFRONT

2001Cerulean Tower

2008 – Mega project around Shibuya Station

2012Shibuya Hikarie

2018Shibuya Station South District (SHIBUYA STREAM)

2020Use of a new platform at Ginza Line Shibuya Station to start

20202020 Tokyo Olympic and Paralympic Games

2019Shibuya Station District East Tower(SHIBUYA SCRAMBLE SQUARE)

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Kento TakeuchiJoined Tokyu Construction in 1989Mr. Takeuchi was in charge of such duties as discussion and coordination with the client, procurement, and budget management, even in the bidding stage, as the chief engineer of the project of Shibuya Hikarie, which was completed in 2012. He has been participating in the Project to Construct the New East Tower in the Shibuya Station District (hereinafter referred to as “the project”) by utilizing that experience, even in the planning phase, and supervised the project as a whole as project manager. The project is difficult because it requires building an ultra-high-rise structure directly above Shibuya Station, the home of the Tokyu Group. However, he has been making every efort to bring success to the project by inspiring the team and himself.

The project is not just large-scale, but it also requires coordination with a host of other redevelopment projects underway in a complex manner in the vicinity of Shibuya Station. That means that both the capability of each staff to execute their own duties and “team work” are essential. What I have been bearing in mind as project manager is keeping staff motivated. With the support of the head office and branch offices, I was able to create an environment that facilitates communication between staffs. Nearly 90 engineers from our company have been involved in the project, many of whom have likely experienced a first-hand feeling of the importance of working on a team. This work experience will become one of the strengths of our company as the scale of construc-tion projects expands. A majority of our engineers decided to join our company because they want to “engage in large-scale construction projects that contribute to urban development.” The experience with this project will bring a positive facet to our young engineers, which I expect will help them grow as workers who will play pivotal roles in the future at our company.

What Tokyu Construction, which knows Shibuya inside and out, has done so farOur work environment in the project imposes an array of con-straints, because it is being conducted directly above Shibuya Station. The area receives the most number of visitors of any-where in Japan and is surrounded by JR train lines, the Tokyo Metro Ginza Line, and National Route 246 above ground, as well as the Tokyo Metro Fukutoshin Line and the Tokyu Toyoko Line on the underground levels. The Shibuya River also flows through the site. Our company proposed establishing pedes-trian pathways within the building, considering that “securing safe routes for users of Shibuya Station to take during the proj-ect” is the most crucial point for propelling the project smoothly forward. This has elevated the difficulty of the project because it additionally requires us to ensure the safety of users. Still, we have successfully brought forward the proposal using our know-how of “securing routes that users can take” and “carrying out construction work in a way that does not hinder the operation of railways” that we have cultivated through our experience with Shibuya Hikarie and other projects. I will introduce three of our capabilities required execute this kind of proposal.

First Capability

Cooperation that transcends the boundary between civil engineering and building constructionOur company engages in a number of projects, including SHIBUYA STREAM and land readjustment at Shibuya Station’s East Exit. We take advantage of the collective strength of Tokyu Construction to cooperate beyond the boundary between the civil engineering division and the building construction division by making sure that opportunities are presented to the workers to coordinate operations and share information. Although such cooperation is said to be difficult to achieve, we have succeeded in facilitating smooth coordination between the divisions due to a corporate culture where civil engineering and building construc-tion have been united and shaped. The ultimate goal of each project has been shared among the workers involved.

Second Capability

Management of construction projectsOver 2,000 skilled construction workers are devoted to proj-ects daily at peak periods. The information and communica-tion technology (ICT) of our company’s original management system, “TcPass,” controls the entering and leaving of staff. Furthermore, the “Foreman’s Committee,” which consists of the foremen of subcontractors serving as the personnel in charge of work site management, plays a key role to manage the duties of respective workers. Duties of the “Supervisor Council” include serving as the body in charge of managing work at each floor

The experience gained through this project will become one of our company’s strong points

Bringing success to this project with teamwork and the execution power of each member!

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where workers from a number of subcontractors work and planning a ceremony for raising a ridgepole. The council fosters teamwork at each work site by cooperating with the prime contractor while respecting autonomy there.

Third Capability

Management of carrying-in and carrying-out – On-the-dot distribution of items – We are struggling to carry in and out necessary materials and equipment. This is due to multifarious constraints, including lim-ited space, a small number of routes along which items can be moved, and time limitations that allow us to work only at night. Therefore, we are striving to be as innovative as possible and use part of the upper floors as construction yards. We started off with working on the surroundings. In addition, we have devel-oped and adopted a new system, “DandALL,” which compre-hensively manages the schedule of carrying-in and carrying-out items, in an effort to move the required items in time. Information on the carrying-in and carrying-out of items is shared in real time with workers via tablet devices or smartphones that workers carry with them, significantly cutting down on the “wasted time” of waiting for items to be carried in. This system will be utilized continuously, as ICT that improves productivity at work sites.

Tokyu Construction’s power creates the futureA roughly 230-meter-tall new landmark is being built in Shibuya, fusing a number of people and a multitude of technologies, such as ICT. The experience obtained through the project will become capabilities to be utilized in a plethora of worksites, creating the future of our company.

Policy of Project ManagerSloganTo create the future in Shibuya, Japan’s No.1 must-see destination

Motto of Project Manager Keep in mind that we are taking on a challenge of develop-ing the area around Shibuya Station. Few other projects in the world are as difficult.

Focus on what you should do with tenacity to the fullest once the job is identified. What matters is not the limits of your abilities but lack of tenacity. (Excerpts from the teachings of Toshio Doko, a Japanese engineer)

Corporate Governance

Business Execution Divisions

Branches and Divisions SubsidiariesHead Office Divisions Executive Officers

Division Management Committee

Director, President

Appointments and Remunerations Committee

Governance Committee

Investigator

Internal Control Office

Shareholder’s Meeting

Board of DirectorsAccountingAuditor

Auditor’s Office

Management Meeting(Execution Management)

Council of Business Unit Managers(Business Unit Monitoring)

Management Committee (Operational Decision Making)

Appointment / Dismissal

ConsultationReport

Appointment / Dismissal

<Advisory Committee of the Board of Directors>

Appointment / DismissalAppointment / Dismissal

Audit / Investigation

Report

Cooperation

Audit

Report

Audit

Supervision

CooperationNomination /

Direction

Direction

Management Audit

Monitoring

Report

Report

Internal Audit

Head Office Risk Management Council, Orders Received Council Overseas Orders Council, Real Estate Transaction Council,

Business Investments Council

Board of Corporate Auditor


Corporate Governance Structure

Recent Initiatives for Enhancing Corporate Governance

and higher medium- to long-term corporate value. It is crucial that we foster a strong corporate governance structure to achieve these goals, hence we are always striving to make improvements that will result in more effective and efficient corporate governance. We have also come up with the “Tokyu Construction Corporate Governance Basic Policy,” which includes our fundamental approach to corporate governance, as well as establishing relevant standards, etc.

Our Fundamental Approach to Corporate Governance

At Tokyu Construction, we have a corporate philosophy based on our mission statement, management policy, and principles of conduct that describes the type of company we seek to become. To make this vision a reality, we are working to contribute to society through our business activities and achieve sustained growth

FY 2004 FY 2010 FY 2015 FY 2016 FY 2017 FY 2019

Directors

Number of directors in the Articles of Incorporation

No more than 20 No more than 12

Independent outside director 1 2 3

Corporate auditors

Number of corporate auditors in the Articles of Incorporation

No more than 5

Independent outside auditor 3

Female officers 1 (independent outside director)

Remuneration for officers Introduction of stock-based remuneration plan

Appointments and Remunerations Committee Establishment of committee

Governance Committee Establishment of committee

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Corporate Governance Structure[Board of Directors]The Board of Directors consists of eleven members (including four outside directors and three indepen-dent officers). Directors serve a one-year term to clarify management responsibilities for each fiscal year and to build a dynamic and responsive management structure. Outside directors comprising corporate managers with extensive knowledge and experience as well as lawyers with expertise and work experience in the real estate industry provide much-needed perspective in delibera-tion of issues and offer a sound management structure to ensure directors are carrying out their responsibili-ties appropriately.

[Executive Officers]To expedite decision making in business operations and strengthen the functions of each division, the Board of Directors appoints 31 full-time executive offi-cers who, like directors, serve one-year terms.

[Establishment of Management Meeting]To discuss and decide on important management policies and issues, the Management Meeting, com-posed of seven directors and one executive officer and chaired by the Representative Director, is convened as needed (51 times during FY 2018).

[Audit Committee and Corporate Auditors]The Audit Committee consists of five corporate audi-tors (all independent officers including three outside auditors), with outside auditors possessing expertise as lawyers and/or certified public accountants, or possessing extensive knowledge and experience as former employees of administrative organs, to audit for compliance in management practices. Each auditor

participates in Board of Directors meetings and other important meetings and checks over important deci-sion-making documents related to the area for which he or she is responsible in order to understand the process of decision making on important issues and monitor business operations. Additionally, each audi-tor also conducts investigations into relevant business operations and, if deemed necessary, receives business reports from subsidiaries and audits the execution of directors’ duties, reporting results to the directors. Dedicated staff members are also assigned to the Auditor’s Office to support these operations.

[Accounting Auditors]In FYE March 2019, our financial audit was carried out by two certified public accountants, Hiroaki Matsuo and Hiroto Inoue, who are both members of Ernst & Young ShinNihon LLC. We also have six other certi-fied public accountants and 15 other staff involved in financial auditing.

[Appointments and Compensations Committee]As an advisory body to the Board of Directors regard-ing the selection and compensation of directors, auditors and executive officers, the Appointments and Compensations Committee is composed mainly of independent outside directors to ensure the autonomy, objectivity and accountability functions of the Board of Directors regarding the appointment and compensa-tion of company directors.

[Governance Committee]As an advisory body to the Board of Directors on gen-eral issues of corporate governance, the Governance Committee is composed mainly of outside directors and outside auditors. This committee works to ensure sustained improvements in thorough corporate gover-nance practices, as well as corporate value.

Composition of the Board of Directors

Percentage of outside directors 36%

Chairman

Outside directors4 people

Inside directors7 people

Address of the Code of Corporate GovernanceVisit the following website (Company Information/Cor-porate Governance) for details.* Linked in the “Corporate Governance Report (PDF)” (Available in Japanese)

https://www.tokyu-cnst.co.jp/company/governance.html


NameInde-

pendent Officer

Reason for AppointmentAttendance Rate

Board of Directors Meetings Audit Committee

Hiroshi OtsukaMr. Otsuka has been reelected as an outside director due to his rich man-agement experience and broad insights as corporate manager, as well as our expectations that he will contribute to the management using his opinions from the viewpoint of one familiar with the railway business.

15/15 times —

Yutaka Kubota

Mr. Kubota has been reelected as an outside director due to his rich man-agement experience and broad insights as corporate manager, as well as our expectations that he will contribute to the Company’s management using his opinions from the viewpoint of one familiar with the railway and construction businesses.

15/15 times —

Masao Tomoe

Mr. Tomoe is the representative director of Tokyu Corporation, a core company of the Tokyu Group. He has been reelected as an outside director due to his rich management experience and broad insights as corporate manager, as well as our expectations that he will contribute to the Company’s management using his opinions from the viewpoint of one familiar with the overall knowledge of business administration.

12/12 times —

Kahori YoshidaMs. Yoshida has been elected as an outside auditor due to our expecta-tions that she will contribute to the Company’s management using her opinions based on her expertise as a lawyer and work experience in the real estate industry.

* *

Isao OndaMr. Onda has been elected as an outside auditor with the expectation that he will use his expertise as a certified public accountant (CPA) and certified tax accountant for our auditing work.

15/15 times 5/5 times

Youichi Saito Mr. Sato has been elected as an outside auditor due to his expertise as a lawyer. 15/15 times 5/5 times

Yoshikazu KatoMr. Kato has been elected as an outside auditor due to his rich experi-ence in administrative agencies and broad insights accumulated through-out his career.

12/12 times 4/4 times

Note: *indicates that the information is not available since the director has been newly elected.

Reason for Appointment of Outside Officers/Board Meeting Attendance Rate (As of FY 2018)

From the standpoint of diversity, Ms. Kahori Yoshida, who is a female director, was appointed at the Shareholder’s Meeting held on June 25, 2019.

Support Systems for Outside OfficersFor outside directors, a system has been set up to com-municate and share information, including conducting advance briefings on the agenda items of the Board of Directors, in consideration of their urgency and impor-tance. For outside auditors, a system has been set up to communicate and share information, including assigning dedicated staff members to the Audit Office and conducting advance briefings on the agenda items of the Board of Directors.

Standard for Independence of Outside Directors and Outside Corporate Auditors

Please visit the following website (Company Information/Corporate Governance).

* Linked in the “Policy and Standards on Corporate Governance, etc. (PDF)” (Available in Japanese).”

https://www.tokyu-cnst.co.jp/company/governance.html

Analysis and Evaluation of the Board of Directors’ Effectiveness

At Tokyu Construction, our Corporate Governance Basic Policy specifies that a report on whether the Board of Directors is functioning appropriately is evalu-ated and made public every year. In FY 2018 in cooperation with outside consultants, all of the Board’s directors and auditors answered an anonymous questionnaire and were interviewed indi-vidually about the effectiveness of their work so that all members could express their opinions freely. Regarding the issues that were highlighted by the survey, the Governance Committee discussed them, and the Board of Directors reviewed them to test their effectiveness. The outline is as follows: In general, the evaluation was positive in terms of the Board’s effectiveness. The issues identified in the previous evaluation were also found to be consistently improved. However, since some comments were made regarding ensuring the diversity of the Board of Directors, among others, we will continue to endeavor to enhance the Board’s effectiveness based on this evaluation.

Corporate Governance

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CategoryNumber of

OfficersAmount

(Millions of yen)

Directors (Outside directors) 9 (2) 225 (13)

Corporate auditors (Outside auditors) 5 (3) 44 (13)

Total (Outside officers) 14 (5) 269 (26)

(Remarks)1. As of end of FY 2018, we have 10 directors (three outside) and five

auditors (three outside).2. One of the outside directors receives no compensation.3. The above amount includes the amount of expenses recorded for the

fiscal year under review of ¥16 million, under the stock-based compen-sation plan for directors (excluding outside directors), which was re-solved at the 15th Regular Shareholder’s Meeting held on June 26, 2018.

Directors and Corporate Auditors’ Compensation (FY 2018)

Strategic Shareholdings

Policy Regarding Strategic ShareholdingsWe acquire and hold shares issued by our partner com-panies with a view toward contributing to improve-ments in our corporate value, through the receipt of orders for construction work under favorable terms, by strengthening relationships to maintain good relations with such companies. Meanwhile, with respect to individual shares, each year we conduct a short-term review using indices for the most recent fiscal year, by carefully examining whether there are sufficient benefits relative to capital cost, and whether there is a risk of a decrease in the share price. We also conduct a medium- to long-term

review, by carefully examining whether a certain level of profit is obtained from construction relative to the holding cost, using indices for several fiscal years in the past and future. Based on the results of such reviews, each year we confirm at the Board meeting whether or not the significance of such holding has been verified, while comprehensively taking into account factors such as economic rationale and future prospects. With regard to shares for which the objective of holding is not met and the significance of holding can no longer be verified, we proceed with the sale of such shares, in principle, in order to reduce their holdings, after taking into consideration factors such as the situations at the issuing companies as well as market trends.

(¥30 million for outside directors, excluding employees concurrently serving as directors) and the annual pay-ment for corporate auditors is within ¥96 million. The amount of stock-based compensation states the amount recorded as expenses, based on the stock-based remuneration plan that was resolved at the 15th Regular Shareholder’s Meeting held on June 26, 2018, separately from the foregoing. The number of directors who are eligible for stock-based compensation is seven. Director compensation is determined by a resolu-tion of the Board meeting after the Appointments and Compensations Committee, which consults with the Board of Directors, has discussed and reported on the appropriateness of the compensation amount calcu-lated as described above. Compensation for corporate auditors is decided through discussions within the Audit Committee.

Compensation and Incentive Systems for Officers

Policy for Determining Compensation for DirectorsThe amount of compensation for our directors is based on the standards specified in our company including their position and operational status, as well as employ-ee payment rates, and consists of basic compensation (monetary) and stock-based remuneration. Basic compensation comprises fixed compensa-tion according to position and variable compensation, among which variable compensation is calculated by multiplying the monthly fixed compensation of each di-rector by an evaluation-based allocation coefficient, and other factors. The evaluation-based allocation coefficient is determined by taking into account qualitative assess-ments of business performance evaluations, such as the operating income of each division in charge. Stock-based compensation has been introduced, with the aim of providing incentives for the enhancement of medium- to long-term corporate value, and aligning the economic values of the directors and shareholders. Points are given each year to directors, excluding outside directors and nonresidents of Japan, according to their positions, by utilizing the Board Benefit Trust, and pay-ments in the form of shares and money are made upon retirement, with one point being equivalent to one share. Remuneration for corporate auditors consists of fixed compensation paid in the form of money. Regarding the resolution of the Shareholder’s Meet-ing on the amount of basic remuneration for officers, at the 5th Regular Shareholder’s Meeting held on June 25, 2008, the amount of director compensation was passed noting that “the annual payment is within ¥360 million



Board of Directors (As of June 25, 2019)

1 Tsuneo IizukaRepresentative Director, Chairman

Apr. 1971 Joined TOKYU CONSTRUCTION CO., LTD.Oct. 2003 Executive Officer of the CompanyJun. 2004 Senior Executive Officer of the CompanyJun. 2006 Director, Senior Executive Officer of the CompanyApr. 2008 General Manager, Civil Engineering Division of the

CompanyJun. 2009 Representative Director, Senior Managing Execu-

tive Officer of the CompanyApr. 2010 Representative Director, President of the CompanyJun. 2018 Representative Director, Chairman of the Company

(to present)

4 Kazushige AsanoRepresentative Director, Senior Executive Vice President

Apr. 1974 Joined TOKYU CONSTRUCTION CO., LTD.Jun. 2005 Director, Executive Officer of the CompanyJun. 2008 Executive Officer of the CompanyApr. 2011 Senior Executive Officer of the CompanyJun. 2012 Representative Director, Senior Executive Officer of

the CompanyApr. 2013 General Manager, Sales & Marketing Division of

the CompanyApr. 2014 Representative Director, Senior Managing Execu-

tive Officer of the CompanyApr. 2018 In charge of Sales & Real Estate Division of the

Company (to present)Jun. 2018 Representative Director, Senior Executive Vice

President of the Company (to present)

2 Toshio ImamuraRepresentative Director, Vice Chairman

Apr. 1974 Joined TOKYU CORPORATION (“Tokyu”)Jun. 2007 Director of TokyuJun. 2008 Managing Executive Director of TokyuApr. 2011 Senior Managing Executive Director of TokyuApr. 2014 Representative Director & Vice President of TokyuJun. 2015 Representative Director, Senior Executive Vice

President of TokyuApr. 2018 Counselor of the CompanyJun. 2018 Representative Director, President of the CompanyJun. 2019 Representative Director, Vice Chairman of the

Company (to present)

5 Motoyuki TakagiDirector, Senior Managing Executive Officer

Apr. 1979 Joined TOKYU CONSTRUCTION CO., LTD.Apr. 2011 Executive Officer of the CompanyApr. 2016 Senior Executive Officer of the Company

General Manager, Building Construction Division of the Company

Jun. 2016 Director, Senior Executive Officer of the CompanyApr. 2018 General Manager, Building Construction Division,

in charge of Institute of Technology and Wooden Build-ing Construction Division of the Company (to present)

Jun. 2018 Director, Senior Managing Executive Officer of the Company (to present)

Jun. 2019 In charge of International Division of the Company (to present)

3 Mitsuhiro TeradaRepresentative Director, President

Apr. 1979 Joined TOKYU CONSTRUCTION CO., LTD.Jun. 2010 Executive Officer of the CompanyApr. 2012 Senior Executive Officer of the CompanyJun. 2012 Director, Senior Executive Officer of the CompanyApr. 2013 General Manager, Civil Engineering Division of the CompanyApr. 2016 Director, Senior Managing Executive Officer of the CompanyApr. 2018 Representative Director, Senior Executive Vice

President of the CompanyJun. 2019 Representative Director, President of the Company

(to present)

6 Masatoshi ShimizuDirector, Senior Executive Officer


General Manager, Business Administration Division of the Company (to present)

Jun. 2017 Director, Senior Executive Officer of the Company (to present)

7 Yushi TsukuiDirector, Senior Executive Officer


General Manager, Civil Engineering Division of the Company (to present)

Jun. 2018 Director, Senior Executive Officer of the Company (to present)

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8 Hiroshi OtsukaOutside Director

Apr. 1958 Joined Keisei Electric Railway Co., Ltd. (“Keisei”)Jun. 1992 Managing Director of KeiseiJun. 1995 Senior Managing Director of KeiseiJun. 1996 Representative Director, Senior Managing Director of KeiseiJun. 1997 Representative Director, Vice President of KeiseiJun. 1998 Representative Director, President of KeiseiJun. 2004 Representative Director, Chairman of KeiseiJun. 2008 Advisor of KeiseiJun. 2010 Director of the Company (to present)Jun. 2018 Honorary Advisor of Keisei Electric Rail Co., Ltd. (to present)

11 Kahori YoshidaOutside Director

Apr. 1996 Joined Recruit Cosmos Co., Ltd.Sep. 2010 Passed the bar examinationDec. 2011 Joined Yoshiko Takagi Law Firm (current T&T Part-

ners Law Office) (to present) Registered as LawyerApr. 2012 Member of the Operation Committee for Housing

Dispute Examination Meeting, Daini Tokyo Bar Association (to present)

Nov. 2018 Special member of the Chuo Construction Project Dispute Examination Committee, the Ministry of Land, Infrastructure, Transport, and Tourism (to present)

Jun. 2019 Director of the Company (to present)

14 Isao OndaAuditor

Oct. 1973 Passed second stage examination of CPA examination Joined EIKO Accounting Corporation

Sep. 1977 Registered as Certified Public AccountantDec. 1977 Registered as Certified Tax AccountantJul. 1990 Partner of Century Audit Corporation (“Century”)Jun. 1993 Director of CenturyJun. 2002 Executive Director of Ernst & Young ShinNihon Audit CorporationSep. 2008 Executive Director of Ernst & Young ShinNihon LLC

(“EY ShinNihon”)Sep. 2010 Advisor of EY ShinNihonApr. 2011 Representative Director, President & CEO of GTM

Research Institute Inc.Jun. 2012 Auditor of the Company (to present)Dec. 2015 Representative Director, President of GTM Research

Institute Inc. (to present)

9 Yutaka KubotaOutside Director

Apr. 1970 Joined Sagami Railway Co., Ltd. (“Sagami”)Jun. 1998 Director of SagamiMay 2000 Representative Director, President of Sotetsu Real

Estate Co., Ltd.Nov. 2000 Representative Director, President of Sotetsu Home Co., Ltd.Mar. 2001 Representative Director, President of Sotetsu Real

Estate Sales Co., Ltd.Jun. 2002 Managing Director of SagamiJun. 2011 Representative Director, President of Sotetsu

Construction Co., Ltd.Jun. 2015 Director of the Company (to present)

12 Atsuyoshi MaenoFull-time Auditor

Apr. 1980 Joined TOKYU CONSTRUCTION CO., LTD.Oct. 2003 General Manager, General Affairs Department of

Nagoya Branch, Wide Area Division and Manager, Safety, Environment & Quality Department of the Company

Jan. 2009 Auditor and Head of Secretariat of the CompanyJun. 2012 Full-time Auditor of the Company (to present)

15 Youichi SaitoAuditor

Oct. 2005 Passed National Bar ExaminationSep. 2007 Completed training of legal apprenticeship and

registered as attorney Member of Crime Victim Support Center of Daini Tokyo Bar Association

Sep. 2015 Member of Discipline Committee of Daini Tokyo Bar Association (to present)

Apr. 2016 Member of Legal Apprenticeship Committee of Daini Tokyo Bar Association (to present)

Jun. 2016 Auditor of the Company (to present)

10 Masao TomoeOutside Director

Apr. 1976 Joined TOKYU CORPORATION (“Tokyu”)Jun. 2007 Director of TokyuApr. 2011 Managing Executive Director of TokyuApr. 2014 Senior Managing Executive Director of TokyuJul. 2014 Executive General Manager of Human Resources

Headquarters of TokyuJun. 2015 Director & Senior Managing Executive Officer of TokyuApr. 2017 Representative Director & Vice President of Tokyu

(to present)Jun. 2018 Director of the Company (to present)

13 Satoshi HashimotoFull-time Auditor

Apr. 1981 Joined TOKYU CONSTRUCTION CO., LTD.Apr. 2010 General Manager, Internal Control Office of the

CompanyApr. 2012 Executive Officer of the CompanyJun. 2016 Full-time Auditor of the Company (to present)

16 Yoshikazu KatoAuditor

Apr. 1982 Joined the Science and Technology Agency, Cabinet OfficeJul. 2001 Director of Research Environment and Industrial Coopera-

tion Division, Research Promotion Bureau, Ministry of Edu-cation, Culture, Sports, Science and Technology (“MEXT”)

Jul. 2008 Counselor to Director General for Science, Technol-ogy and Innovation Policy, Cabinet Office

Jul. 2010 Deputy Director-General, Research and Develop-ment Bureau, MEXT

Apr. 2012 Vice President of Japan Aerospace Exploration Agency Apr. 2015 Director of Technology Division, Cabinet Satellite

Intelligence Center, Cabinet Intelligence and Research Office, Cabinet Secretariat

Nov. 2017 Specially Appointed Counselor, Remote Sensing Technology Center of Japan (to present)

Jun. 2018 Auditor of the Company (to present) Foundation That Supports Value Creation

We also have a framework in place for preventing the occurrence of risks and promptly responding to risks that have materialized, primarily by establishing regulations and guidelines pertaining to factors such as safety and health, the environment, quality, compli-ance, business continuity during large-scale disasters, management of personal information and information security, and through the utilization of management systems. In addition, regarding individual operations such as construction orders, real estate transactions and other business investments, we have established the “Head Office Risk Management Council,” “Orders Received Council,” “Overseas Orders Council,” “Real Estate Transaction Council” and “Business Investments Council” as cross-departmental structures for reviewing risks beforehand.

assessing and evaluating risks comprehensively, and identifying risks. During the discussions of material risks, measures are developed from a comprehensive and long-term perspective, and concrete response measures are taken from a strategic perspective at the Strategies Meeting and other meetings, as needed.

Basic Approach to Risk Management/ Risk Management System

We have long been engaged in the development of a framework for identifying and responding to risks, and are seeking to strengthen risk management for the purpose of shoring up our management and financial foundations, based on the policies under the mid-term management plan, in order to respond to changes in the business environment. Specifically, the Management Meeting and other meetings are held periodically to identify social and economic trends, and to discuss measures in response to major management risks. In addition, with regard to the risks of each business, management monitors business operations primarily through the Council of Business Unit Managers, and provides prompt instruc-tions in response to major business risks.

Flow of Discussion of Major Risks

In preparation for discussions of major management risks, management discusses measures to be taken in response to major risks through developing a shared language for our risk models and risk definitions,

Risk Management


1 Risk models

4 Identification of major risks

Develop a shared language for our risk models and risk definitions to ensure a comprehensive understanding of risks

Quantitatively and qualitatively eval-uate the effects on management

Identify and prioritize major risks according to the evaluation

Discuss measures to respond to major risks from a long-term, strategic perspective

2 Risk definitions

5 Discussion of response

3 Evaluation criteria

of infrastructure – especially access to disaster re-sponse routes that are essential for search and rescue. To do so, we have entered into an agreement to work alongside national and prefectural government agen-cies and infrastructure companies in the case of a disas-ter, as well as with our subcontractors.

and accidents, and to respond to the trust of society and our clients. In addition, we revised our Information Security Guidelines in March 2019, and are conducting e-learning sessions based on these Guidelines.

Business Continuity Management (BCM)

We came up with a business continuity plan (BCP) in 2008, in preparation for large-scale disasters, and received a certification for “Construction Company Continuity Capacity During Disasters” from the MLIT Kanto Regional Development Bureau in 2009. We have renewed this certification every two years since. Our efforts in business continuity include establish-ing a training plan based on our BCP and having exec-utives participate in training and workshops alongside other staff. This allows us to notice and review relevant issues and implement a PDCA cycle, which is then reflected in our BCP. In BCM, in order to secure a working environment for our employees, we are refining internal systems by distributing emergency supplies, such as food and drink that would be required during blackouts and/or phone line congestion, in line with Tokyo Metropolitan regula-tions. In addition, as our head office is located opposite Shibuya Station, one of Japan’s major transportation hubs, we are a part of a council comprising Shibuya Ward Office staff and local businesses who are responsi-ble for helping people unable to return home in the case of a disaster. We regularly participate in emergency drills run by the Shibuya Ward Office and this council and support these efforts as a member of the community. Furthermore, we intend to fulfill our social responsi-bilities by doing our utmost to ensure early restoration

Information Security

We have established our Basic Policy on Information Security in order to protect business-related information assets from threats such as information leakage incidents

BCP training carried out in September 2018 involving a scenario of a large earthquake along the Nankai Trough.

We established the emer-gency response department at the head office in Shibuya, and conducted training on verifying the safety of indi-viduals and business conti-nuity, along with our Osaka and Nagoya Branches, and six subcontractors.

1 In managing information, establish a management system to ensure the security of information assets, and regularly review the system and make improvements as necessary.

2 Conduct balanced information security measures from all as-pects, including physical, personnel and IT, and implement measures to prevent the occurrence of issues such as informa-tion leakage, while promptly responding to any problems that may occur.

3 Establish operational systems for promoting information secu-rity measures, and clarify the roles and persons in charge.

4 Demand clear responsibility, based on the employee regula-tions or contracts regarding violations of this basic policy as well as related rules and regulations.

5 Conduct regular reviews to identify and resolve problems, in order to ensure that this basic policy as well as related rules and regulations are disseminated, implemented and main-tained, and that improvements are made continuously.

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Basic Policy on Information Security (established on March 31, 2013)


Compliance

Basic Approach to Compliance

We consider compliance with corporate ethics and laws to be non-negotiable and the most fundamental part of CSR but realize that we need to create systems and offer thorough staff training in order to completely eliminate violations caused by lack of knowledge or awareness. In order to make our understanding of “always doing what should be done” a part of Tokyu

Tokyu Group’s Compliance

Compliance management is not only intended to pre-vent corporate scandals, but is also indispensable for us to remain as a brand that is preferred by custom-ers, through enhancement of our corporate value. The Tokyu Group has been proactively promoting compli-ance-related activities since it made compliance one of the basic stances of the Group’s management in April 2000.

Construction’s company culture, we have created action guidelines and norms which we seek to imprint on our staff through the use of training materials, including online learning.

Compliance Promotion Structure (1) Compliance Officer The officer in charge of the Internal Control Office acts as the compliance officer, and performs the following roles as the chief officer of “risk management through compliance management” at the Company.

(i) Formulation of Compliance Code, etc.

(ii) Establishment of structure for “risk management through compliance management”

(iii) Reporting of status to the Board of Directors, etc.

(2) Internal Control OfficeThe Internal Control Office is in charge of promoting and overseeing “risk management through compliance management,” and plays the following roles in promot-ing compliance.

(i) Ensure awareness of Compliance Code, etc., and foster awareness on compliance

(ii) Implement surveys on the status of practice regarding the Compliance Code, etc., and make improvements

(iii) Respond to consultations regarding the Compliance Code, etc., and respond to cases of violations of the Compliance Code, etc.

(iv) Plan and implement training on compliance and risk management

(v) Monitor the practice status at each division, branch, business unit and subsidiary, etc. (imple-mentation of audit)

In January 2002, we established the Group’s compli-ance guidelines as the basic principles of action related to compliance for all officers and employees of the Tokyu Group. Based on these guidelines, each Group company conducts its own activities, in accordance with its business structure and corporate culture, in an effort to promote compliance.

The Tokyu Group’s Compliance Guidelines (Available in Japanese)https://www.tokyu-cnst.co.jp/company/pdf/20190704compliance.pdf


Guidelines for Action/Compliance Code

1 Focus on risk management

2 Ensuring safety

3 Sales activities with an understanding of customer needs

4 Provision of high-quality designs and construction work

5 Appropriate responses to various “voices” from customers and neighbors

6 Fair and transparent decision-making

7 Protection of company assets

8 Timely, appropriate and fair information disclosure, and public relations activities

9 Prohibition of insider trading

10 Strict compliance with the law and fair transactions

11 Rejection of relations with antisocial forces

12 Optimal procurement activities

13 Appropriate rule management

14 Appropriate business operations and internal control

15 Respect for intellectual property

16 Appropriate document management

17 Protection of confidential information

18 Ensuring reliability and safety of information systems

19 Ensuring healthy and safe work environments

20 Distinction between private and public matters, moderation of entertainment and gifts

21 Organization of a favorable work environments

22 Responsible business operations and continuous improvements

23 Corporate activities that consider the environmental impact

24 Social contribution activities as a corporate citizen

Whistleblowing System

We provide a whistleblowing system, in accordance with the Compliance Consultation and Reporting Regulations, with the aim of detecting possible compliance violations early, and internally rectifying them swiftly. Points of contact for whistleblowing have been estab-lished internally, as well as externally through a law firm. Employees (including temporary staff) can consult and report via phone, email, document or face-to-face

meeting (consultations and reporting can be carried out anonymously). We encourage our employees to consult with the Compliance Consultation and Reporting Desk when they do not know what to do, or feel even slightly that there may be a problem, on compliance issues. In addition, at overseas bases, we have set up Over-seas Consultation and Reporting Desks that support con-sultation requests in the official language of each country, as well as in English.

Prevention of Corruption

SystemThe managers in charge of compliance and persons responsible for compliance cooperate with the Internal Control Office in working to prevent corruption, while evaluating the status of practice regarding prevention each year, and reflecting the results of each evaluation in the improvement plan for the following year.

Basic Policy Regarding Overseas ComplianceOur Group (which includes the Company and its subsidiar-ies) has established the following basic policy, with a view toward preventing bribery of public officials, and the like,

and other prohibited acts such as cartels, in conducting business abroad, and will promulgate this policy among our officers and employees, as well as business partners. There is a growing risk of penalties involving huge fines be-ing imposed on corporations and individuals, due to tighter international regulations and so-called competition laws that regulate the bribery of foreign public officials, and the like over-seas, as well as acts that distort market competition. Based on this recognition, we have established the Overseas Compli-ance Program, which includes a top message and basic policy, with a view toward responding to such risks, and began its im-plementation in April 2016. For the purpose of implementing this program at overseas bases, we conducted training in FY 2018 for 49 national staff members who work locally.

(3) The Manager in Charge of Compliance/ The Person Responsible for Compliance

In order to ensure the effectiveness of compliance in each department, the general manager of each division, branch and business unit, and other line managers who directly report to the President, as well as the presidents of subsidiaries are appointed as “the managers in charge of compliance,” and the general manager of the general affairs division at each division, branch, business unit, etc., the general managers of the Corporate Strategy Division and Business Administration Division and the general managers of the general affairs divisions of subsidiaries are appointed as “the person responsible for compliance.” These managers in charge of compliance and persons responsible for compliance cooperate with the Internal Control Office in working to develop and improve the compliance structure in each department, while evalu-ating the status of practice regarding compliance each year, and reflecting the results of each evaluation in the improvement plan for the following year.

Education and Training of EmployeesIn order to ensure that our officers and employees fully understand the importance of “risk management through

compliance management,” we will gradually and contin-uously raise awareness and conduct training, such as: (i) training for the employees in each department, with the aim of raising their awareness (organized by the Internal Control Office); (ii) personnel training to raise awareness by including lectures on compliance in level-specific training organized by the Personnel Department, etc. (organized by the Personnel Department ) and (iii) more practical voluntary training at each workplace, centered on case studies and discussions tailored to the actual situations (organized by each department). In addition, in order to ensure that compliance aware-ness takes root within the Company, we conduct online learning and training upon promotions, with content that varies according to position. There has recently been an increase in the number of cases abroad in which the bribery of foreign public officials has been exposed, and it is not sufficient to pay attention only to domestic developments. As such, from FY 2016, we have introduced the overseas compliance program, which includes publication of the Compliance Code in foreign languages for overseas offices, and regulations aimed at preventing violations such as bribery of foreign public officials and cartels.

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Human Resources


Employee EngagementIn November 2018, we conducted an “employee engagement survey” for all employees of the Group. The results of this survey made it possible to visual-ize our organizational status, including the strengths and weaknesses of the organization across the entire company and in each department, and the respective organizational issues were reported to corporate man-agers as well as general managers, group leaders, work site managers and others who are responsible for the organization. To resolve organizational issues that can

hinder the improvement of employee engagement, we aim to create an organization that provides both job satisfaction and a pleasant working environment for employees, by continuing improvement activities according to the condition of the organization.

Trends in actual number of days work sites are closed (by business of civil engineering/building construction)

Engagement Rating*

Trends/Strengths of the Entire Tokyu Construction Group ■ High level of satisfaction toward contributing to

society and having rewarding work ■ A large number of employees feel a sense of unity,

with shared goals at the workplace

As of March 2019 2019 target 2020 target 2021 target

Civil engineeringClosed for 6 days/4 weeks

97% Closed for 6 days/4 weeks100%

Closed for 8 days/4 weeks70% or more Closed for 8 days/4 weeks

100%Building construction

Closed for 6 days/4 weeks64%

Closed for 8 days/4 weeks60% or more

FY 2018 FY 2020 target FY 2026 target

BB BBB A

What is employee engagement?Generally speaking, the term employee engagement refers to “the concept of mutual trust/contribution between the company and em-ployees, as well as mutual attachment.” However, at Tokyu Construc-tion, employee engagement is defined as “each employee’s willingness to contribute by proactively demonstrating his or her potential through a proper understanding of the company’s strategies and goals.”

* Excluding work sites to which application is difficult

* Evaluation using “Motivation Cloud” of Link and Motivation Inc. BB is the fifth rating from the top out of all 11 ratings, BBB is the fourth rating from the top and A is the third rating from the top.

Basic Approach to Increasing Job Satisfaction in the Workplace

The Tokyu Construction’s corporate vision is summed up in the word “Shinka,” which reflects our desire to be a general contractor that is always “deepening and evolving in the pursuit of genuine value.” In this vision, we define “an organization of true value” to be one where “employees with shared values respect each

Creating a Favorable Work Environment

Achieving Work-life BalancePeople have diverse values regarding work-life balance. We respect our employees’ right to choose diverse lifestyles, based on the premise that they will fulfill their responsibilities and duties as employees. We are striving to improve our personnel system, primarily by examining the status of taking child/nursing care leave, using the opinions of those who have taken such leave as a refer-ence, because we consider it essential to establish working conditions that allow employees to have such a choice. In addition, we are formulating an action plan to enable employees to fully exercise their abilities, by creating a comfortable working environment where they are able to balance work and child rearing.

other and individual work satisfaction unifies the orga-nization into one that is highly productive.” As well as respecting human rights, enhancing the employment environment and promoting diversity, we are also working to increase the ability and job satisfaction of each employee in the Tokyu Construction Group and is working to become a company that helps its employ-ees learn about the meaning of work and their exis-tence and contribute to society through work.

Our Action Plan Based on Act on Advancement of Measures to Support Raising Next-Generation Children(Available in Japanese)https://www.tokyu-cnst.co.jp/csr/human_resources/action_plan.html

Initiatives for Work-style ReformIn April 2018, we newly established the “Work Style Reform Department.” By cooperating with the Civil Engineering Division and the Building Construction Division, we are pushing forward with initiatives aimed at work-style reforms, such as establishing a five-day work week at work sites. In July 2018, we introduced a flex-time system, a teleworking system, work intervals and other systems, not only for office workers but also for employees at work sites.

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Human Resource Development

In order to maximize true value in the construction industry, it is necessary to create “(unique) social value” that “only Tokyu Construction can provide,” and con-tinue to implement corporate culture reforms that make such value creation possible. Needless to say, human resources are the source of true value. We respect the diverse values of individuals, and expect our human resources, who possess various attributes, to play active roles in appropriate positions, through a fair personnel system. We are also working to enhance our training program in order to enable “evolution (step-up),” by utilizing the individuality of each employee.

Human Resource Development According to the Master Plan

In our corporate vision, “an employee of true value” is defined as “an individual who develops his or her career by proactively setting challenges with high aspirations and a spirit of independence.” We aim to develop human resources with a high level of expertise and professional-ism, pride, passion, ambition and perseverance. By creat-ing a “human resource development master plan” based on this vision, and comprehensively combining on-the-job training and group training, self-development support, career development support and other programs accord-ing to career stage, we are developing an environment in which each employee can flower into his or her full poten-tial, and evolve into human resources who can respond to changes in the operating environment.

Specific Implementation Measures

Stage of career

Qualification/work role and

promotion

Career position Main career trackOfficer

Professional CareerC1 C2 C3 C4

Main 1 Main 2 Main 3

Work Site Main 1 Work Site Main 2

Level of problem- solving

skills

[Learn] [Master] [Demonstrate] [Lead] [Passing down]

Period for Practical Understanding/Gaining Knowledge

• Understand internal operations

• Know one’s own intentions, motivation and values

Period for Broadening Skills and Making Career Decisions

• Match self-determination with job duties

• Decide on career after the main career track

Period for Contributing to Business Performance

• Expand influence to others, based on multilateral roles

• Improve expertise, change career

Lead the Entire Company

• Lead the entire company from a high perspective

Period for Passing Down to the Next Generation

• Pass down skills, know-how and personal network

Category Name Aim C1 C2 C3 C4 Main 1 Main 2 Main 3 Officer

On-the-job training

1 Training Instructor System Support for smooth initial intro-duction

2 On-the-job Training Master Card Gain basic knowledge and skills step-by-step

3 Career Enhancement Sheet Cultivate awareness of improve-ment and independence

4 New Employee Mentor System Prevent early turnover of new employees

Off-the-job training

5 Training by Career Level Gain basic knowledge and skills common to each job category

6 Training to Reinforce Roles of Main Career Track and Officers Play a role/cultivate awareness

7 Training by Job Category Gain necessary skills/knowledge for performing duties

8 Training by Theme Respond to the changing environ-ment and diversity of employees

Selection/recruitment

9 Selective Training for Management Human Resource Development

Foster human resources for the next generation of management

10 Cross-Departmental Young Genera-tion Project

Corporate reform utilizing the ideas/motivation of young employees

11 Overseas Internship Program Eliminate psychological resis-tance to go overseas

12 Overseas Trainee Program Foster overseas human resourc-es over the medium-term

13 Internal Job Posting System Identify/appoint the necessary human resources

Self- develop-

ment

14 Remote Education Support Promote self-development

15 Support Program for Acquisition of Qualifications

Support early acquisition of professional qualifications

Career devel-

opment support

16 Periodic Transfer System Provide opportunities to explore suitability of career

17 Intra-/Inter-divisional Rotations Broaden duties/gain manage-ment perspective

18 Career Planning System Cultivate/support for a sense of career over the medium-term

19 e-voice System Support early realization of career de-velopment (self-assessment system)

Half a year after joining the Company

Selection of mentors among employees in the third year or later since joining the Company

5th and 6th year

2nd to 5th year

Rotation of young employees

Young employees in C2 and below

C3 – Main 1

C2 –

5 years or more of continuous employment


Human Resources


Diversity

We strive to create a workplace where diverse human resources can exercise their full potential, regardless of job category, generation or gender. We effectively utilize various viewpoints and values stemming from individual “differ-ences,” in an effort to create an environment where we can respond swiftly to changing economic conditions and the

Promotion of Health and Productivity Management

We have promoted health improvement initiatives and work-style reforms with a focus on the health of employees and their families. We will further strengthen these initiatives with the intention of remaining an organization that can

demands of our customers and other stakeholders, and culti-vate a corporate culture that thrives on diversity.

Promoting Women’s Success in the Workplace Based on the results of an assessment of the present con-ditions and an analysis of issues, in accordance with the Act on the Promotion of Female Participation and Career Advancement in the Workplace, we have formulated an action plan that we should undertake. In accordance with this plan, we will steadily proceed with the creation of systems and establishment of working environments in which women can fully demonstrate their abilities in their professional lives.

Our Action Plan Based on the Act on the Promotion of Female Participation and Career Advancement in the Workplace (Available in Japanese)https://www.tokyu-cnst.co.jp/csr/human_resources/action_plan_w.html

Employment of Persons with DisabilitiesWe continue to employ people with disabilities under the philosophy of realizing an “inclusive society” where anyone can participate in society through work.

make each employee’s dreams come true. For this purpose, we will establish the Health and Productivity Management Declaration to promote health and productivity management.

Initiatives for Health and Productivity Management (Available in Japanese)https://www.tokyu-cnst.co.jp/csr/management/index.html

Number of Female Managers and Candidates

Ratio of women in regular/mid-career recruitment for career-track positions

FY 2016 2017 2018

Manager Main 2 2 1

Manager candidate

Main 1(M1) 4 3 5

C4 (L) 15 22 25

FY 2016 2017 2018 2019

Number of recruits 103 111 127 129

Number of women 20 18 22 25

Ratio of women 19.4% 16.2% 17.3% 19.4%

* As of the fiscal year-end. The letters in parentheses indicate promotion under the former personnel system.

Management Skills Training for Managers

Employment rate in 2018 2.46%

*Has remained above the legal employment rate since 2015.

Education and Training Programs for EngineersIn order to raise our technical level, we provide various opportunities, including on-the-job and off-the-job training, to improve the skills of our engineers. In addition, we also actively support employees in the acquisition of qualifica-tions such as architects and management engineers, in order to meet participation requirements in biddings, etc., and enhance corporate evaluation (business evaluation points). In the Civil Engineering Division, new employees in the civil engineering field take part in a 10-month training program consisting of a practical curriculum, with the aim of becoming capable of responding to work site situations before being assigned to a work site. In the Building Construction Division, new employees are assigned to work sites in pairs during the first-year training period, to create an environment where they can improve by learning from each other. In addition, in order to provide support to employees who are aiming to acquire qualifications, the “First-class Registered Architects School” is provided within the Company.

Fostering Human Resources for Future ManagementIn order to improve the organizational issues revealed in the employee engagement survey conducted from last year, we provide management skills training for manag-ers, as well as support for activities toward organizational improvement. In addition, as our unique initiative, we have been running a “Young Generation Project” to make use of the flexible ideas and ability to take action of our young employees, to enhance in-house and external communi-cation. We also have been continuing the activities of the “Shinka Management School,” where employees in various positions voluntarily partic-ipate to gain the necessary knowledge in business and management, enhance their perspectives and broaden their horizons.

Occupational Safety (Safety and Health)

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Basic Approach to Health and Safety

Under the strong leadership of top management, we will cooperate with all members involved in the construction business, in order to realize safe, healthy and comfortable work environments, by implementing a PDCA cycle through the united efforts of the head office, branches and work sites.

Activities Based on Health and Safety Management Systems

Under the Construction Occupational Health and Safety Management Systems (COHSMS) operated by the Company, our head office, branches and work sites

cooperate in implementing a PDCA (Plan – Do – Check – Act) cycle to pro-mote continuous health and safety activ-ities, in an effort to prevent industrial accidents, while also promoting worker health and the creation of comfortable work environments, with the aim of enhancing health and safety standards.

We are also working to ensure safety at worksites, by thoroughly implementing “The Tokyu Construction Ten Safety Rules.” Please see the following for details.

Collaboration with Subcontractors Collaboration with subcontractors is essential for Safety and Health management at work sites. We carry out a variety of activities to eliminate accidents, such as operating a system to certify superior foremen as Meisters, while collaborating with the Accident Prevention Cooperative Association, com-prising subcontractors engaged in our construction work.

Our Health and Safety Activities (Available in Japanese)https://www.tokyu-cnst.co.jp/csr/safety/index.html

Status of Human Resource Development and Training

We have established a Safety and Health training system, and provide mandatory training in the form of lectures on health and safety management, in which employees are grouped into eight levels, from new employees to those in their 28th year. Rather than focusing on classroom lectures, these lectures feature expanded practical training, with the aim of raising awareness of safety, and incorporate many group discussions along with group work called “buzz sessions.” This fiscal year in particular, we are providing practical training on the themes of “hazard predictions,” “preparation of work plans,” “new risk assessments” and “accident case studies” according to years of employment.

Trend in occurrence of accidents

*Safety index: (Frequency rate x Strength rate)

FY 2014 2015 2016 2017 2018

Safety index 0.76 0.17 0.12 0.20 0.43

Evolution of Safety ManagementIn light of a deterioration in the index, we will review our safety management system in FY 2019, and implement the following four items towards the evolution of safety management.

1 Strengthen the safety management system by increasing top management’s participation

2 Review the safety construction work cycle3 Strengthen communication4 Comply with the latest management systems such

as the NEW COHSMS and new risk assessments, as other revisions

TOPICS

1 Identifying RiskWe work to prevent accidents, by identifying dangerous and injurious factors that may be hazardous sources from the stand-point of work-related health and safety.

2 Setting Priority Implementation Activities1) Eradication of public accidents, fatal accidents and major accidents2) Reduction of accidents due to crash and fall3) Reduction of accidents involving construction machinery and

cranes, etc.4) Reduction of accidents due to collapse

3 Maintaining and Enhancing Physical and Mental HealthWe promote the health of all our employees and those involved in construction work to create a stress-free workplace.

4 Compliance with Laws and RegulationsWe clarify laws and regulations related to industrial safety and health and internal regulations, and comply therewith.

5 Systems Operation/ImprovementsWe operate the established Safety and Health management systems, and continuously make improvements.

6 We take initiatives regarding all of our employees and workers involved in construction work.

Safety and Health Policies


Quality Control


Basic Approach to Quality Control

In the construction industry, we regard the end users of our infrastructure as customers, as well as those who order construction jobs. Those ordering construc-tion work also want to build a trustworthy relationship with locals throughout the duration of the project. At

Quality Control System and Status of Its Operation

After the civil engineering division and the build-ing construction division of the Tokyo Branch each obtained ISO 9001 certification in March 1997, all branches and divisions throughout Japan obtained cer-tification by October 2000. In April 2004, the Company made a full transition to a company-wide integrated quality management system (QMS), which was regis-tered in September of the same year. In addition, since 2005, combined external audits with an environmental management system (EMS) have also been conducted each year. In October 2017 (partly in February 2018), both re-certification and transition were approved,

Status of Human Resource Development and Training

Each year, we periodically conduct training related to QMS for internal auditors, and encourage acquisition of qualifi-cations. In addition, we provide a mandatory training pro-gram for engineers and technicians of the appropriate year, and also conduct training to enhance the skills of internal auditors and follow up on the management system. We also provide education on the quality manage-ment system to employees, contract employees and subcontractors, as needed, at each division, department and work site.

Tokyu Construction, we want to provide solutions tai-lored to these kinds of user needs. This is our under-standing of customer-oriented business management, and with this understanding as our foundation, we are working with subcontractors to improve technical capacity and quality.

following our 7th re-certification audit and audit of our transition to ISO 9001: 2015. In addition, on April 1, 2018, we established the Quality Control Department within the Business Management Department of the Building Construction Division. Through establishment of the Quality Control Department, we will promote the implementation of the PDCA cycle in quality control, by strengthening collaboration among the quality control divisions at our divisions, branches and business divisions. Furthermore, we will promote the implementation of training and job rotations, with the aim of increasing the awareness of quality control and fostering human resources who support quality, through collaboration with the division responsible for training.

We are strongly aware that the enhancement of “the ability to find and solve problems on their own” is an urgent challenge, and we believe that enhancing the capabilities of each individual leads to the strengthening of our organization, including “maintaining and improving safety and quality,” “appropriate processes” and “pursuing high profit margins.” In September 2015, the Building Construction Division began holding study sessions called “Site-Learning” at each work site, as an initiative to strengthen on-site capabilities. “Site-Learning” is conducted on-site throughout Japan, with monitoring performed by each branch, as well as the Building Construction Division, in order to standardize and improve the contents.

In order to assure the quality of our products (civil engineering structures and buildings), with the aim of improving customer satisfaction, we carry out the following activities when undertak-ing design, construction supervision and construction work.

1 Initiatives for RiskWe will identify risks that may exert an influence on the assurance of product quality and improvement of customer satisfaction, and consider the extent of their potential influence in order to respond accordingly.

2 Understanding Needs and ExpectationsTo meet customer needs and expectations as well as applicable regu-latory requirements, we will explore, clarify and understand such needs and expectations.

3 Setting Quality TargetsWe set effective quality targets for the following business divisions, for the purpose of assuring product quality and increasing customer satis-faction, while supporting our management policies.

Civil Engineering Business Division Building Construction Business Division

The support division for management establishes targets related to the effective utilization of resources (human resources, infor-mation and communication technology and other infrastructure, employee work environments, know-how, etc.), in order to assist the business divisions in achieving the above-mentioned targets.

4 System Operations and ImprovementsWe will operate the quality management system, and make con-tinuous improvements.

Quality Policies

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Considering the Environment

Basic Approach to Considering the Environment

The management philosophy of the Tokyu Group is to “do business in harmony with the natural environ-ment.” We established our “Environmental Charter” in 1997*. In addition, amid growing interest in SDGs and ESG investment, companies are being required to demonstrate to investors and customers that their eco-nomic activities are sustainable with solid basis. Against this backdrop, we revised our environmental policies in April 2019, declaring that, “we will work to prevent con-tamination and protect the environment, and promote

Endeavors as an Environment- Friendly Company

Environment-Friendly DesignConsidering the environment during the design phase is an important process in reducing the envi-

ronmental impact in the building management phase. We endeavor to incorporate environment-friendly de-sign in all of our design projects, by promoting de-sign that takes the global and local environment into consideration, as a priority initiative in our environ-mental policies.

environment-friendly management in order to realize a ‘sustainable society’ that achieves a harmonious balance between the environment and the economy.” Taking advantage of this opportunity, we will take our initiatives one step further. In order to demonstrate that we are an environment-friendly company, we have decided to review our structure for the disclosure of environmental information, with the aim of proactively disclosing information.

Our Environmental Charter and Environmental Policies (Available in Japanese)https://www.tokyu-cnst.co.jp/csr/environment/index.html

TOPICS 2

TOPICS 1

*We introduced the environmental management system (ISO 14001) in 1999, and expanded it to a company-wide integrated management system in 2014.

Green Infrastructure Demonstration Facility In March 2018, we established a green infrastructure demonstration facility within our Institute of Technology, to promote sustainable community development, including disaster prevention/mitigation and biodiversity conservation through utilizing the functions of the natural environment, and are verifying the effectiveness of the facility. We will proceed with the advancement and improvement of technologies related to green infrastructure factors based on the collected experimental data, and plan to push forward with proposals for the installation of green infrastructure facilities, which are expected to see further utilization in urban areas in the future.* Green Infrastructure: A concept and methodology that proactively incorporates the functions and mechanisms of nature that are useful for humans and environmental conservation in infrastructure (social capital) development and land use.

ZEB RenovationsWith the aim of reducing CO2 emissions during building use, which account for 86.9% of CO2 emissions in the supply chain, we carried out ZEB renovations on our Institute of Technology, which has stood for 25 years since its completion. As a result, we have cur-rently achieved a 76% energy reduction, which is the highest level in Japan. We will con-tinue to push forward with further improvements, aimed at a 100% energy reduction (Net Zero), in order to respond to a growing demand for renovation of existing buildings.

*ZEB (Zero Energy Building: A building that reduces energy consumption to nearly zero)

• Energy-saving: External heat load reduction (double-skin curtain wall, exterior thermal insulation of exterior wall, multi-layered glass)

• Energy creation: Best mix of CO2-free energy sources (solar power, geothermal heat and hydrogen)* Installed the first hydrogen production, storage and power generation system for a

private business in Japan

Charac-teristics


Considering the Environment


Initiatives for BiodiversityWe added “Biodiversity Conservation” to our environ-mental policies in July 2010, and implement a variety of initiatives based on these policies. Regarding bio-diversity, we will continue pursuing initiatives such as biodiversity conservation activities, cooperation with

relevant local communities and the development of environment-friendly technologies.

Our Initiatives for Biodiversity (Available in Japanese)https://www.tokyu-cnst.co.jp/csr/environment/index.html

TOPICS

Ecological Corridor Simple Evaluation Tool (CSET)We developed the Ecological Corridor* Simple Evaluation Tool (CSET) under the guidance of Professor Akira Tanaka of the Landscape Ecosystems Lab, in the Department of Restoration Ecology and Built Environment, Faculty of Environmental Studies at Tokyo City University, with the aim of developing an ecosystem network evaluation system that is useful in biodiversity-conscious urban planning. CSET is a tool for the simple assess-ment of biodiversity potential in urban areas. We utilize the results of analysis by CSET, mainly in bidding proposals.*Ecological Corridor: A corridor-like habitat that continuously connects important bases where migratory wildlife can travel.

Environmental target

Flow of Materials

Activity FY 2018 Targets Achievement of FY 2018 Targets Evaluation FY 2019 Targets

Prevention of global warming

Reduction of CO2

emissions

Overall 23.7 t-CO2 per 100 million yen Overall 18.0 t-CO2 per 100 million yen

◎

Overall 23.4 t-CO2 per 100 million yen

Civil engineering •Tunnels :134.4 t-CO2 per 100 million yen •Others :36.9 t-CO2 per 100 million yen



Building construction 13.2 t-CO2 per 100 million yen



Reduction of electric power consumption

50.1 kWh per m2 Company-wide 43.0 kWh per m2 ◎ Company-wide 42.57 kWh per m2

Effective utilization of resources

Reduction of amount of waste

Civil engineering 26.2 m3 per 100 million yen Civil engineering 23.37 m3 per 100 million yen◎

Civil engineering 26.0 m3 per 100 million yen

Building construction 0.084 m3 per m2 Building construction 0.079 m3 per m2 (Construction completed in FY 2018)

Building construction 0.083 m3 per m2 (Construction completed in FY 2019)

Improvement of sorting rate

Overall 70.2%

Civil engineering 82.8%

Building construction 68.6%

Overall 72.87%



○Overall 70.9%



Status of Environment-related Activities

Energ

y consum

ed

Office

Electric power 2.55 million kWh

City gas 148 thousand m3

Tap water used 18 thousand m3

Con-struction

Work

Electric power 29.17 million kWh

Diesel oil 14,546 kl

Gasoline 212 kl

Kerosene 203 kl

Tap water used 552 thousand m3

Co

nstruction b

ypro

ducts

Sludge 145,007 tConcrete mass 117,781 t

Asphalt concrete mass 32,966 tWood chips 22,412 tScrap metal 5,247 tWaste paper 1,435 tPlasterboards 6,733 t

Special controlled industrial waste 115 tOthers 45,253 t

Amount of construction byproducts generated 376,949 t

CO2 emissionsOffice 1,658 t-CO2

Construction Work 54,265 t-CO2

Final disposal 6.0% 22,741 t

Amount recycled 94.0% 354,208 t

INPUT>>> >>>OUTPUT

CO2

emis-sions

Supply chain

5,837,982 t-CO2

Scope 1 33,084 t-CO2

Scope 2 12,633 t-CO2

Scope 3 5,792,266 t-CO2

Emissions in the supply chain are based on estimates for FY 2018

Creating a green network

Social Initiatives

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Principles of social responsibility

The 7 Core Themes of ISO 26000 Main Initiatives Activities Being MonitoredKey Themes

Consideration of stakeholders Dialogue with shareholders and investorsCustomer satisfaction and employee awareness surveysExchange of ideas and collaboration with subcontractors

Status of activities to strengthen corporate governance and enhance compliance, business continuity management training, etc.

Status of activities, HR development, and training based on health and safety policies and health and safety management systems, activities to improve working environment, etc.

Social contribution activities, interaction with the local community in offices and on-site, etc.

Status of activities, HR development, and training based on the environmental charter, policies and environmental management systems (ISO 14000), etc.

Status of activities based on HR strategies/the HR development master planAction plans based on Act on Promotion of Women’s Participation and Advancement in the Workplace, Act on Advancement of Measures to Support Raising Next-Generation Children, etc.

Status of activities based on quality policies and quality management systems (ISO 9000)Status of HR development and training, etc.Status of development based on the guidance of the Technical Committee and the technology development roadmap

Dialogue with stakeholdersCollaboration with stakeholders

Health and safety measures in constructionWorking environment improvement measures

Securing sound profitCorporate GovernanceComplianceRisk Management

Employment/diversity(women, foreigners, etc.)Work-life balance initiativesHuman resource development/education and training activities

Promotion of environmental conservation in constructionPromotion of environmentally-conscious designDevelopment of environmentally-friendly technology

Improvement of construction qualityDevelopment of construction technologyTransmission and improvement of construction techniques and skills

Promotion of social contribution activitiesPromotion of increased interest and understanding of the construction industryInteraction with communities in offices and on-site

Efforts in sound management

Efforts in health and safety

Efforts to consider the environment

Efforts in improvement of quality

Active involvement in society and the local community

1.Organizational governance

2.Human rights

3.Labor practices

4.The environment

5.Fair operating practices

6.Consumer issues

7.Community involvement and development

Efforts to increase employee satisfaction in the workplace

28 Years of Continuous Clothing Aid Activities for AfricaMotherland Academy International, a non-governmental organization made up of moth-ers who convey the equality and preciousness of life to children through actions, conducts aid activities in West Africa. Through this or-ganization, every year since 1991, we have carried out activities to provide clothing do-nated by Tokyu Construction Group employ-ees and our subcontractors to regions of Africa, where aid does not reach. For 28 years, through 2018, we have delivered a total of over 160,000 pieces of clothing to countries such as the Republic of Mali.

Participating in CharityEvents to Support Cancer PatientsWe have sponsored and participated in the Saitama Relay of “Relay for Life Japan,” a community-based charity event that supports cancer patients and their families, for 10 con-secutive years since 2009. Employees, their families, and subcontractors helped with the 24-hour charity walk and fundraising activities, with the aim of increasing awareness of can-cer prevention and conveying the precious-ness of life to the next generation. We also provide voluntary support for the operation of the event, including preparation of drawings of the venue and setup/removal work on the day of the event.

Production and Screening of the Movie “Signpost of Reconstruction”We produced a documentary film about resto-ration work on the North Rias Line of the Sanriku Railway, which suffered tremendous damage during the Great East Japan Earthquake in 2011. This movie documents the struggles and shared hopes of civil engineers engaged in the resto-ration work, as they continued contributing to reconstruction after the earthquake, through the resumption of operation of the entire North Rias Line. We held a screening of the film in February 2019, with the aim of preventing the weathering of the earthquake traces, and deepening the understanding of the work of civil engineers among the general public. The movie is currently available on YouTube as well. Our endeavor to in-crease interest in the civil engineers who support social infrastructure was highly acclaimed, and the movie won the grand prize at the 2018 Japan Society of Civil Engineers Film Competition.

Our Key CSR Themes

1 2 3

Signpost of Reconstruction (YouTube) (Available in Japanese)

https://youtu.be/CoC5qWFTTuo


(Millions of yen)

For the fiscal year FYE Mar. 2010 FYE Mar. 2011 FYE Mar. 2012 FYE Mar. 2013 FYE Mar. 2014 FYE Mar. 2015 FYE Mar. 2016 FYE Mar. 2017 FYE Mar. 2018 FYE Mar. 2019

Operating Results

Orders received 218,361 205,726 212,410 210,933 290,647 341,992 303,758 293,539 299,436 285,476

Net sales 236,655 244,974 227,843 228,570 226,164 262,815 296,393 243,618 320,711 331,437

Operating income 5,282 7,584 1,572 1,154 2,630 6,009 18,178 17,211 21,416 21,987

Ordinary income 4,912 7,811 1,884 2,301 3,559 8,024 19,768 18,839 22,128 22,932

Profit or loss attributable to owners of parent 1,901 4,087 1,799 △566 2,685 5,805 13,340 13,691 16,118 15,504

Financial Position

Total assets 162,893 146,781 154,442 154,195 169,685 192,226 214,526 204,813 249,756* 264,996

Total capital 27,936 30,287 31,390 32,487 35,258 44,861 54,238 66,380 79,175 92,981

Cash Flow

Cash flows from operating activities 28,301 20,540 (11,486) 14,264 (9,302) 2,111 39,003 (23,545) 16,226 29,694

Cash flows from investing activities (2,395) 481 20 (619) (2,072) (1,525) (334) (1,717) (3,383) (5,786)

Cash flows from financing activities (25,107) (9,813) 4,704 (8,569) 6,476 (675) (6,035) (2,788) (6,457) (3,575)

Cash and cash equivalents at end of year 13,526 24,663 17,881 23,097 18,215 18,318 50,674 22,582 28,865 49,145

Per Share Data

Net income or loss (Yen) 17.81 38.29 16.86 (5.31) 25.16 54.40 125.00 128.30 151.05 145.37

Total net assets (Yen) 261.35 283.29 293.46 303.61 329.35 418.59 506.04 619.91 739.87 868.87

Cash dividends (Yen) 6.00 10.00 3.00 0.00 5.00 13.00 25.00 26.00 31.00 30.00

Payout ratio (%) 33.7 26.1 17.8 — 19.9 23.9 20.0 20.3 20.5 20.6

Financial Indicators

Equity ratio (%) 17.1 20.6 20.3 21.0 20.7 23.2 25.2 32.3 31.6* 35.0

ROE (%) 7.3 14.1 5.8 (1.8) 7.9 14.5 27.0 22.8 22.2 18.1

PER (Times) 15.8 6.5 12.6 — 17.4 12.5 7.4 6.8 7.6 5.7

Non-Financial Indicators (Non-Consolidated)

Number of employees at end of year (People) 2,453 2,460 2,446 2,403 2,313 2,340 2,412 2,464 2,537 2,523

Gender breakdown (Male/Female) (People) 2,304/149 2,302/158 2,285/161 2,231/172 2,148/165 2,161/179 2,219/193 2,249/215 2,303/234 2,275/248

Employment rate for persons with disabilities (%) 1.79 1.94 1.81 2.16 2.07 1.84 2.22 2.26 2.30 2.46

CO2 emissions (t-CO2)Office 1,270 1,387 1,060 1,370 1,607 1,841 1,913 1,820 1,754 1,658

Workplaces 38,496 40,008 37,260 51,069 44,397 59,394 66,112 67,333 51,602 54,265

Construction by-products generated (t) 307,549 350,320 361,347 451,353 490,293 403,918 473,004 395,309 410,245 376,949

Recycling rate (%) 93.5 94.4 93.3 94.7 96.8 96.1 95.9 98.4 99.4 94.0

Accident frequency rate 0.65 0.53 1.07 1.02 1.04 0.84 0.73 0.70 0.79 0.32

* Tokyu Construction has adopted the Partial Amendments to Accounting Standard for Tax Effect Accounting, etc. (“the Standard”) from the start of the current fiscal year, and the Standard has been retroactively applied to the figures as of March 31, 2018.


10-year Main Consolidated Financial and Non-Financial Data

(Millions of yen)

For the fiscal year FYE Mar. 2010 FYE Mar. 2011 FYE Mar. 2012 FYE Mar. 2013 FYE Mar. 2014 FYE Mar. 2015 FYE Mar. 2016 FYE Mar. 2017 FYE Mar. 2018 FYE Mar. 2019

Operating Results

Orders received 218,361 205,726 212,410 210,933 290,647 341,992 303,758 293,539 299,436 285,476

Net sales 236,655 244,974 227,843 228,570 226,164 262,815 296,393 243,618 320,711 331,437

Operating income 5,282 7,584 1,572 1,154 2,630 6,009 18,178 17,211 21,416 21,987

Ordinary income 4,912 7,811 1,884 2,301 3,559 8,024 19,768 18,839 22,128 22,932

Profit or loss attributable to owners of parent 1,901 4,087 1,799 △566 2,685 5,805 13,340 13,691 16,118 15,504

Financial Position

Total assets 162,893 146,781 154,442 154,195 169,685 192,226 214,526 204,813 249,756* 264,996

Total capital 27,936 30,287 31,390 32,487 35,258 44,861 54,238 66,380 79,175 92,981

Cash Flow

Cash flows from operating activities 28,301 20,540 (11,486) 14,264 (9,302) 2,111 39,003 (23,545) 16,226 29,694

Cash flows from investing activities (2,395) 481 20 (619) (2,072) (1,525) (334) (1,717) (3,383) (5,786)

Cash flows from financing activities (25,107) (9,813) 4,704 (8,569) 6,476 (675) (6,035) (2,788) (6,457) (3,575)

Cash and cash equivalents at end of year 13,526 24,663 17,881 23,097 18,215 18,318 50,674 22,582 28,865 49,145

Per Share Data

Net income or loss (Yen) 17.81 38.29 16.86 (5.31) 25.16 54.40 125.00 128.30 151.05 145.37

Total net assets (Yen) 261.35 283.29 293.46 303.61 329.35 418.59 506.04 619.91 739.87 868.87

Cash dividends (Yen) 6.00 10.00 3.00 0.00 5.00 13.00 25.00 26.00 31.00 30.00

Payout ratio (%) 33.7 26.1 17.8 — 19.9 23.9 20.0 20.3 20.5 20.6

Financial Indicators

Equity ratio (%) 17.1 20.6 20.3 21.0 20.7 23.2 25.2 32.3 31.6* 35.0

ROE (%) 7.3 14.1 5.8 (1.8) 7.9 14.5 27.0 22.8 22.2 18.1

PER (Times) 15.8 6.5 12.6 — 17.4 12.5 7.4 6.8 7.6 5.7

Non-Financial Indicators (Non-Consolidated)

Number of employees at end of year (People) 2,453 2,460 2,446 2,403 2,313 2,340 2,412 2,464 2,537 2,523

Gender breakdown (Male/Female) (People) 2,304/149 2,302/158 2,285/161 2,231/172 2,148/165 2,161/179 2,219/193 2,249/215 2,303/234 2,275/248

Employment rate for persons with disabilities (%) 1.79 1.94 1.81 2.16 2.07 1.84 2.22 2.26 2.30 2.46

CO2 emissions (t-CO2)Office 1,270 1,387 1,060 1,370 1,607 1,841 1,913 1,820 1,754 1,658

Workplaces 38,496 40,008 37,260 51,069 44,397 59,394 66,112 67,333 51,602 54,265

Construction by-products generated (t) 307,549 350,320 361,347 451,353 490,293 403,918 473,004 395,309 410,245 376,949

Recycling rate (%) 93.5 94.4 93.3 94.7 96.8 96.1 95.9 98.4 99.4 94.0

Accident frequency rate 0.65 0.53 1.07 1.02 1.04 0.84 0.73 0.70 0.79 0.32

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Financial Overview


Overview of Business Results

Overview of Business ResultsThe Japanese economy continued to slowly recover during FYE March 2019 as capital investment increased and per-sonal consumption showed signs of recovery alongside improvements in corporate earnings and the employment and income environment, despite weaknesses in some exports and production. In the construction industry, the market environment remained strong, reflecting high con-struction demand related to the 2020 Tokyo Olympic Games and Paralympic Games, as well as steady capital investment. Under these circumstances, the Group achieved strong performance in its core businesses, posting increases in both sales and profits, primarily due to an increase in completed construction sales as a result of progress of large-scale construction work, as well as an increase in renovation work at subsidiaries, despite factors such as a lower gross profit margin, reflecting a deterioration in the profitability of some of our construction work. In addition, under the four basic policies of our “Mid-Term Management Plan (2018-2020): Shinka 2020,” which is in its first fiscal year, namely “transforming our human resources and organization to elicit employee motivation and capabilities,” “reinforcing the domestic construction business through a customer-centric perspective and

Full-year results (consolidated) (Millions of yen)

Item FYE Mar. 2018

FYE Mar. 2019 Difference compared to previous year

Rate of change (%)TOKYU

CONSTRUCTION Subsidiary Consolidated

Net sales 320,711 309,946 23,810 331,437 10,725 3.3

Gross profit 35,720 33,370 2,960 36,073 353 1.0

Selling, general and administrative expenses 14,303 13,571 876 14,086 (217) (1.5)

Operating income 21,416 19,798 2,084 21,987 570 2.7

Ordinary income 22,128 20,084 2,057 22,932 804 3.6

Profit attributable to owners of parent 16,118 — — 15,504 (614) (3.8)

Full-year results (unconsolidated) (Millions of yen)

Item FYE Mar. 2018

FYE Mar. 2019 Difference compared to previous year

Rate of change (%)Settlement Ratio

Completed construction sales 310,761 308,623 100.0 (2,138) (0.7)

Civil engineering 73,863 70,381 22.8 (3,481) (4.7)

Building construction 236,898 238,241 77.2 1,343 0.6

Completed construction gross profit 34,767 33,316 10.8 (1,450) (4.2)

Civil engineering 7,198 9,892 14.1 2,694 37.4

Building construction 27,568 23,423 9.8 (4,145) (15.0)

Real estate sales 1,725 1,323 100.0 (402) (23.3)

Real estate gross profit 534 54 4.1 (480) (89.8)

Net sales 312,487 309,946 100.0 (2,540) (0.8)

Gross profit 35,301 33,370 10.8 (1,931) (5.5)

Selling, general and administrative expenses 13,851 13,571 4.4 (279) (2.0)

Operating income 21,450 19,798 6.4 (1,651) (7.7)

Ordinary income 21,514 20,084 6.5 (1,429) (6.6)

Net income 15,555 14,025 4.5 (1,530) (9.8)

problem-solving skills,” “promoting the diversification of revenue sources by expanding strategic businesses” and “shoring up our management and financial foundations in support of heightened profitability,” we endeavored to enhance our relationships with clients as business part-ners, and to improve productivity by utilizing ICT, in order to further enhance the domestic construction business. In addition, we strived to obtain profitable real estate in the real estate business, while endeavoring to receive orders for ODA projects in the international business. As a result, the Group’s business results for FYE March 2019 were net sales of ¥331,437 million (up 3.3% from the previous year) due to an increase in completed construc-tion sales. Regarding profit and loss, operating income was ¥21,987 million (up 2.7% from the previous year), mainly due to an increase in completed construction gross profit and a decrease in selling, general and administrative expenses. Ordinary income increased by 3.6% against the previous year to ¥22,932 million due to recording ¥790 million of investment income using the equity method. After consid-ering tax expenses, etc., profit attributable to owners of the parent was ¥15,504 million (down 3.8% from the previous term). Net sales, operating income and ordinary income reached new record-high levels, as in the previous year.

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Segment Performance

Construction Business (Civil Engineering)Regarding completed construction sales, although we saw an increase in domestic government office construction projects, sales decreased by 4.6% to ¥70,652 million due to a decrease in overseas construction and domestic private construction projects. Meanwhile, segment profit was ¥7,993 million (up 53.3% from the previous year), reflecting an improvement in the profitability of construction projects.

Construction Business (Building Construction)Regarding completed construction sales, although we saw a decrease in domestic government office construction proj-ects, sales were ¥258,896 million (up 5.8% from the previous year) due to an increase in domestic private construction and overseas construction projects. Segment profit was ¥20,200 million (down 8.7% from the previous year), mainly due to a decline in the completed construction gross profit margin, reflecting a deterioration in the profitability of some of our construction projects.

Real Estate Business etc.Regarding net real estate sales, sales amounted to ¥1,888 million (down 5.8% from the previous year). As for profit and loss, a segment loss of ¥304 million (segment income of ¥245 million in the previous consolidated fiscal year) was incurred due to the recording of an allowance for loss in the real estate business, etc. in connection with a review of the revenues and expenses of the long-term, large-scale devel-opment business, despite a recording of profit in the rental business, etc.

Orders (company-wide) (Millions of yen)

FYE Mar. 2019Difference

compared to previous year

Rate of change (%)

Co

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e

Domestic public 50,411 (9,287) (15.6)

Domestic private 189,638 (35,047) (15.6)

General public 155,028 4,401 2.9

Tokyu Group companies 34,610 (39,448) (53.3)

Overseas 23,003 16,050 230.9

263,053 (28,283) (9.7)

Orders (civil engineering) (Millions of yen)



Rate of change (%)

Civil eng

ineering

Domestic public 28,185 (17,768) (38.7)

Domestic private 26,592 1,077 4.2


Tokyu Group companies 14,495 15 0.1

Overseas 22,988 17,672 332.4

77,766 982 1.3

Orders (building construction) (Millions of yen)



Rate of change (%)

Building construction

Domestic public 22,225 8,481 61.7

Domestic private 163,046 (36,125) (18.1)


Tokyu Group companies 20,114 (39,464) (66.2)

Overseas 15 (1,621) (99.1)

185,287 (29,265) (13.6)

Reference data (Tokyu Construction’s performance by area)

FYE Mar. 2017

FYE Mar. 2018

FYE Mar. 2019

400,000

100,000

300,000

200,000

100,000

0

80,000

60,000

40,000

20,000

0

300,000

200,000

100,000

0

(Millions of yen)

FYE Mar. 2017

(Millions of yen)

(Millions of yen)

Overseas

Tokyu Group

General public

Domestic public sector

Overseas

Tokyu Group

General public


Overseas

Tokyu Group

General public


FYE Mar. 2017

FYE Mar. 2018

FYE Mar. 2019

FYE Mar. 2018

FYE Mar. 2019

284,888284,888

65,71165,711

219,176219,176

291,337291,337

214,552214,552

76,78476,784

263,053263,05323,00323,00334,61034,610

155,028155,028

50,41150,411

28,18528,185

12,09612,096

14,49514,495

22,98822,988

151520,11420,114

142,932142,932

22,22522,225

77,76677,766

185,287185,287

31,62231,622 6,9526,95274,05874,058

150,626150,626

59,69859,698

198,170198,170

55,30455,304

Overseas(208)Overseas(208)

10,47010,470

5,3155,31514,48014,480

11,03311,033

45,95445,954

9,9209,920

45,57345,573

21,15121,1514444 1,6361,636

59,57859,578

139,592139,592

13,74413,744

188,250188,250

9,7309,730

Overseas(252)Overseas(252)

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Financial Overview


Consolidated financial position (Millions of yen)

Item FYE Mar. 2017 FYE Mar. 2018 FYE Mar. 2019Difference


Total assets 204,813 249,756 264,996 15,239

Total liabilities 138,433 170,581 172,014 1,433

Interest-bearing liabilities

4,804 1,721 1,638 (83)

(Short-term debt) 3,082 83 80 (2)

(Long-term debt) 1,721 1,638 1,557 (80)

Total capital 66,380 79,175 92,981 13,806

Equity ratio (%) 32.3 31.6 35.0 3.4P

FYE Mar.2017

FYE Mar.2018

FYE Mar.2019

0

15

30

45

(%)

32.332.3 31.631.635.035.0

AssetsCompared to the end of March 2018, total assets increased by ¥15,239 million (up 6.1% from the previous year) to ¥264,996 million due to a decrease of ¥15,476 million in notes and accounts receivable for trade and completed construction work, etc., as well as an increase of ¥20,279 mil-lion in cash and cash equivalents and an increase of ¥5,204 million in incomplete construction expenses.

LiabilitiesWhile construction accounts payable decreased by ¥1,454 million and accrued corporate taxes decreased by ¥868 million, deposits received increased by ¥1,670 million, provision for loss on construction contracts increased by ¥1,466 million, and electronic payment obligations increased by ¥1,094 million, bringing our total liabilities to ¥172,014 million—an increase of ¥1,433 million (up 0.8%) from the end of March 2018.

Cash Flow from Business OperationsAlthough we experienced decreases in funds, such as an increase in income taxes paid and an increase in costs on construction contracts in progress, a total of ¥22,932 million in net income before taxes and other adjustments, along with increases in funds such as a decrease in accounts receivable contributed to a ¥29,694 million increase in funds (funds for FYE March 2018 had increased by ¥16,226 million).

As a result, the balance of cash and cash equivalents as of the end of March 2019 increased by ¥20,279 million from the end of the previous fiscal year, to ¥49,145 million (compared to ¥28,865 million for the end of March 2018).

Total CapitalShareholders’ equity increased by ¥12,100 million due to an increase in retained earnings due to the recording of ¥15,504 million in profit attributable to owners of the parent, despite paying out ¥3,307 million in dividends. In addition, accumulated other comprehensive income increased by ¥1,582 million, primarily due to an increase of ¥1,854 million in valuation difference on available-for-sale securities affected by stock prices. As a result, total capital was ¥92,981 million—an increase of ¥13,806 million (up 17.4%) compared to the end of March 2018. In addition, the equity ratio was 35.0%, up 3.4 points compared to the end of March 2018.

Cash Flow from InvestmentsFunds decreased by ¥5,786 million (funds decreased by ¥3,383 million in FYE March 2018) mainly due to payments to acquire tangible and intangible fixed assets, and pur-chase of shares of subsidiaries and associates.

Cash Flow from FinancingPayment of dividends etc. resulted in a ¥3,575 million decrease in funds (FYE March 2018 saw a decrease in funds of ¥6,457 million).

Overview of Financial Situation

Overview of Cash Flow

Equity ratio

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Regarding the outlook for the Japanese economy, although there are concerns regarding the consumption tax hike, it is expected that the economy will gradu-ally recover, as corporate earnings as well as employ-ment and income environments continue to improve. However, we still need to be aware of uncertainty in the overseas environment. While the domestic construction market is expected to continue to perform well due to an increase in gov-ernment construction investment, there is a concern that tight supply-demand conditions stemming from multiple large-scale redevelopment projects, mainly in major metropolitan areas, will lead to substantially higher construction costs. In addition, it is expected that a qualitative change in demand over the medium- to long-term from flow (predominantly construction of new buildings, etc.) to stock (predominantly mainte-nance and repairs), combined with increasing numbers of elderly construction workers retiring, will result in a serious human resource shortage. As a result, it is neces-sary to take actions to eliminate long working hours and realize work-style reform. Under these circumstances, the Tokyu Construction Group aims to grow into a corporate group that can cope with the changing environment, by continuing to steadily embody measures based on the basic policies of the “Mid-Term Management Plan (2018-2020): Shinka 2020,” while aiming to grow into a corporate group that provides customer-specific comprehensive construction solutions, mainly through utilization of the Tokyu Group’s comprehensive strengths, proactive acquisitions of human resources and M&A. Although we expect a decline in performance in FYE March 2020 due to temporary factors, in order to improve performance, we will focus on receiving orders by further strengthening relationships with our custom-ers, and will also proceed with reforms of our construc-tion production systems, as well as a rationalization of our administrative divisions.

Consolidated cash flow results (Millions of yen)

Item FYE Mar. 2017

FYE Mar. 2018

FYE Mar. 2019

Cash flows from operating activities (23,545) 16,226 29,694

Cash flows from investing activities (1,717) (3,383) (5,786)

Cash flows from financing activities (2,788) (6,457) (3,575)

Effect of exchange rate changes on cash and cash equivalents (40) (102) (52)

Net increase (decrease) in cash and cash equivalents (28,091) 6,283 20,279

Cash and cash equivalents at end of year 22,582 28,865 49,145

Breakdown of gross profit by areaFigures in parentheses indicate profit margin

Gross profit from completed construction sales ¥24,200 million ( 8.3%)

Civil engineering ¥6,000 million ( 7.8%)

Building construction ¥18,200 million ( 8.5%)

Real estate gross profit ¥700 million ( 58.3%)

Total ¥24,900 million ( 8.5%)

Breakdown of sales by areaFigures in parentheses indicate rate of change

Completed construction sales ¥291,800 million ( 5.5%)

Civil engineering ¥77,400 million ( 10.0%)

Building construction ¥214,400 million ( -10.0%)

Real estate sales ¥1,200 million ( -9.3%)

Total ¥293,000 million ( -5.5%)

Dividend results/dividend forecast

Dividend paid for FYE March 2017

¥26 (Consolidated dividend payout ratio 20.3%)





Dividend planned for FYE March 2020


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Company name TOKYU CONSTRUCTION CO., LTD.

Founded on March 12, 1946

Date of establishment April 10, 2003

Capital ¥16,354 Million (as of March 31, 2019)）

Head office 1-16-14, Shibuya, Shibuya-ku, Tokyo 150-8340

Representative Mitsuhiro Terada

Number of employees 2,523

Construction license (TOKU-29) No. 20220 by Minister of Land, Infrastructure, Transport and Tourism

Main servicesCivil Engineering and Building Construction Contracting/Investigation, Construction Plan, Geologi-cal Survey, Measurement, Architectural Design for Civil Engineering and Building Construction, etc.

Locations

Head office/13 Branches/12 Sales offices, etc.[Branch offices]Sapporo Branch, Tohoku Branch (Sendai-shi), Hokuriku Branch (Niigata-shi), Chiba Branch, Civil Proj-ect East Japan Branch (Shibuya-ku, Tokyo), Urban Development Branch (Shibuya-ku, Tokyo), Building Project Metropolitan Branch (Shibuya-ku, Tokyo), Building Project East Japan Branch (Shibuya-ku, Tokyo), Nagoya Branch, Osaka Branch, Hiroshima Branch, Shikoku Branch (Takamatsu-shi), Kyushu Branch (Fukuoka-shi)[Institute]Institute of Technology (Sagamihara-shi, Kanagawa)[Overseas offices]Singapore, Thailand, Indonesia, Myanmar, Bangladesh, Vietnam

Affiliated companies

Token Industry Co., Ltd. (Shibuya-ku, Tokyo)Tokyu Renewal Co., Ltd. (Shibuya-ku, Tokyo)Purantaru farm,Ltd. (Miho-mura, Inashiki-gun, Ibaraki)CH. KARNCHANG-TOKYU CONSTRUCTION CO., LTD. (Thailand)PT. TOKYU CONSTRUCTION INDONESIA (Indonesia)GOLDEN TOKYU CONSTRUCTION CO., LTD. (Myanmar)

Company Profile (June 1, 2019)

WebsiteDetailed information about the Tokyu Construction Group is available on our website.

Corporate Profilehttps://www.tokyu-cnst.co.jp/english/company/index.html

Investor Relationshttps://www.tokyu-cnst.co.jp/english/ir/index.html

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Total number of shares authorized to be issued

400,000,000 shares

Outstanding stock 106,761,205 shares (Including 57,629 treasury shares)

Number of shareholders 32,345

Stock Exchange listing First section of the Tokyo Stock Exchange

Securities code 1720

Shareholder registry administrator

Sumitomo Mitsui Trust Bank, Limited1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

NameNo. of shares held

(Thousands)Percentage of total shares issued (%)

TOKYU CORPORATION 15,362 14.40

The Master Trust Bank of Japan, Ltd. (Trust Account) 4,732 4.44

Mizuho Trust & Banking Co., Ltd. TAISEI CORPORATION retirement benefits trust account re-trust trustee Trust & Custody Services Bank, Ltd.

4,000 3.75

Japan Trustee Services Bank, Ltd. (Sumitomo Mitsu Trust Bank, Ltd. Re-trust - Tokyu Corporation retirement benefits trust account)

3,520 3.30

Japan Trustee Services Bank, Ltd. (Trust Account) 3,177 2.98

SHIMIZU CORPORATION 3,000 2.81

Sumitomo Mitsui Trust Bank, Limited 2,945 2.76

MUFG Bank, LTD. 2,550 2.39

Japan Trustee Services Bank, Ltd. (Trust Account 9) 2,200 2.06

KINDEN CORPORATION 1,924 1.80

Major Shareholders (Top 10)

Stock Information (March 31, 2019)

(Note) Tokyu Corporation has contributed 7.5 million shares to retirement benefit trust accounts, including 3.52 million shares to the Japan Trustee Ser-vices Bank (re-trustee of Sumitomo Mitsui Trust Bank - Tokyu Corporation retirement benefits trust account) and we hold the authority to direct how voting rights for these shares should be executed.

Our company has been selected as a constituent stock in the JPX-Nikkei Index 400 and JPX-Nikkei Mid and Small Cap Index brand. We will continue to work to improve our corporate value and meet the expec-tations of our investors.

The JPX-Nikkei 400 index is composed of companies with high appeal for investors, which meet requirements of global investment standards, such as efficient use of capital and investor-focused management perspectives. Companies are chosen by the Tokyo Stock Exchange and the Nihon Keizai Shimbun.

The JPX-Nikkei Mid and Small Cap applies the concept of the JPX-Nikkei Index 400, which is an index composed of highly attractive listed companies, to mid and small cap equities by selecting companies that focus on capital efficiency and investor-orientated management, and aim to foster greater awareness of such issues among corpo-rate executives. Companies are chosen by the Tokyo Stock Exchange and the Nihon Keizai Shimbun.

Other companies

24.09%

Treasury shares

0.05%Financial institutions

40.84%

Foreign companies, etc.

20.37%

Financialinstruments dealers

1.66%

Distribution ofShareholders

Individuals and others

12.99%

Integrated Report

1-16-14 Shibuya, Shibuya-ku, Tokyo 150-8340, JapanTEL : +81-3-5466-5008 FAX : +81-3-5466-5069E-mail : [email protected]

Corporate Communication Group,Corporate Planning Department, Corporate Strategy Division

p02 p12 - 東急建設株式会社

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